A Pensions Commission set up by the Government to help tackle the problem has identified the "unpalatable choices" of higher taxes, a big increase in private savings or later retirement needed to plug the gap.

Chancellor Gordon Brown has already ruled out tax hikes, leading to speculation that workers will be urged to delay their retirement.

The commission, chaired by former CBI leader Adair Turner, will reveal that the difference between what people should be saving and what they are putting aside for retirement is up to £57 billion, far bigger than expected.

Tony Blair said that workers should be given more choice over how they planned for retirement.

"We must change the culture that can write people off at 65, if not 60 or 55, whether they want to work or not."

The Prime Minister promised that the Government will set out proposals to tackle the pensions crisis following the commission's report.

Mr Turner is expected to say that much of the current problem is that the average retirement age has fallen to 62, which does not allow people time to save enough money for their retirement.

http://www.ananova.com/news/story/sm_1135760.html?menu=news.topheadlines