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  There is nothing new in this as per as the challenges are concerned. People are living longer with the proportion of over 65's in the population also increasing with the baby boomers getting to retirement.
  
  Means testing the state pension is not an answer. It is right that the government are ending current means testing and bringing in the new flat rate pension. This simplifies things and makes sure that if you save for your old age you will not lose out by merely relieving the government from having to pay means tested benefits.
  
  The simple fact that everyone has to face is that if you want more money to live on than c. £7,500 in today's money in retirement then you have to save and invest yourself.
  
  Pensions are an important part of the solution, but only part of it. They are important because for every £100 you put into a pension you get £125 invested with an added tax credit - even non-taxpayers benefit from that.
  
  Problems do need to be resolved as far too many people do not have pension fund of their own and have too little time to build one up. Inter-generational pensions may help resolve this problem for many but there is little or no sign of the government allowing this, they should. Auto-enrollment pensions (happening now) will help towards this as well though I do have considerable reservations about this policy and I also do not believe that this will result in sufficient money for most people.
  
  Other options include Stocks and Shares ISA saving, they are best used alongside pensions to get a combination of the two in retirement making a very flexible strategy.
  
  Whatever the case, if you are worried then you need to get professional advice and whatever you do , don't invest on the basis of anything I have said here. One rule for you though - the earlier you start saving the better and if you can start putting some money into a pension for a new-born that would be an immensely valuable gift.

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