SWINDON'S Age Concern director Jo Osorio is disappointed by the Government's latest news on pensions.

Last week's announcement said the Basic State Pension could be increased by 2012 and the age of retirement would rise to 66.

Mr Osorio, said: "Rumours that the link between Basic State Pension and earnings may be restored could be good news for future pensioners.

"However, a delay of at least six years before this might come into action is bad news for today's pensioners and those retiring before 2012.

"In his report, Turner noted that the real value of the Basic State Pension will have fallen to just £75 in real terms by 2010.

"This will be devalued further if the Government does not act sooner than 2012.

"Already 1.8 million pensioners are living in poverty and two in five of those entitled to Pension Credit are still not receiving it.

"Making pensions work more effectively is crucial for the pensioners of today and tomorrow.

"Increasing the Basic State Pension to at least £114 per week and reducing means-testing for Pension Credit and other benefits would be a start. "