MPs' committee denies crisis

MPs on the Work and Pensions Select Committee have concluded there is not a pensions crisis, but what they describe as a crisis of confidence.

The Committee reported earlier this month on its investigation into the state of the UK pensions system. It claims that the government is facing a turning point, with tomorrow's pensioners potentially facing poverty if the right changes are not made.

It rejected the idea of compulsory pension contributions - one of the key recommendations coming from the union movement. Instead the Committee suggested some form of assistance from the government where workers' contributions to a personal scheme are bolstered with extra money instead of tax relief.

The Committee also rejected the idea of extending the state retirement age beyond 65, at least for the time being.

The report highlighted the weaknesses in the present system - complexity, too much pensioner poverty and lack of security of private pension funds.

The study has been criticised for failing to propose a clear strategy while the Equal Opportunities Commission has said it ignores women.