The new government's plans for pension reform have been welcomed by an independent pensions expert.
Dr Ros Altmann said it is important that changes take place, commenting: "The first step is to reform the state pension, so that it forms a stable base on which private long-term savings can be built."
She noted that "nearly half" of pensioners at present could be subjected to means testing, which could see them "penalised" for having private provisions and therefore put off from making any contributions.
The fact that the new government has listed pensions policy among its priorities is crucial, Dr Altmann added, as "if we do not address this, we are heading for a pensioners' crisis soon - which will damage our long-term growth potential and leave millions at risk of penury as they get older".
Dr Altmann concluded that the alternative would be for pensioners to grow increasingly poor while the working population has to pay more in taxes to support them.
Such comments follow the publication of details of the pensions policy agreed by the two governing parties.
Among the plans announced are a restoration of the earnings link from April next year - with a guarantee that it will be raised by the higher percentage figure out of prices, earnings or 2.5 per cent - and a review of the affordability of public sector pensions.
Various benefits such as the winter fuel allowance and free TV licences will continue, while the pension age is set to rise from 66 from as soon as 2016 for men and 2020 for women.
The pledge to simplify the rules for occupational pensions has received a particular welcome from the National Association of Pension Funds, with chief executive officer Joanne Segars stating: "This will help enormously in restoring them as the best choice for employees wanting to save for a comfortable retirement."
With many public spending cuts to make, the government is likely to face unpopularity in some quarters for a lot of its decisions. But it would appear that pensions policy is not looking like being one of them.
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