Lord Turner has published his key report on the future of UK pensions, recommending an increase in the retirement age and the state pension.
The universal benefit would be based on residency rather than National Insurance contributions.
The peer presented the findings of his government commissioned review on Wednesday following three years of consideration.
His conclusions, which made detailed recommendations rather than just a range of options, included a possible rise in the retirement age to 66 in 2030, "at least 67" after 2040 and possibly 68 by 2050 - with further increases to be made in line with rises in life expectancy, floating the option of a retirement age as late as 69.
"Unless people are prepared to discuss it they are indulging in fairytale economics in which a fairy godmother makes all difficult choices disappear," he said.
But he said his advice was made "on the basis of the present life expectancy" projections.
"We do not believe that we should set today the state retirement age in 2050 because we do not know what actuaries will be telling us then about life expectancy."
The Turner commission also recommended the restoration of the link between state pensions and earnings, phasing out the means tested pensions credit - a move the chancellor has repeatedly rejected.
He also backed the adoption of an 'opt out' rather than 'opt in' workplace savings scheme, with staff paying in four per cent of earnings above £4,888.
Employers would be obliged to contribute three per cent of workers' salaries into pensions schemes under the peer's plans and the government one per cent.
The 'National Pensions Savings Scheme' fell short of union demands for Australian-style compulsory pensions although the TUC called it "bold".
Contributions would be collected through the Pay As You Earn system and paid into a national account with charges on the scheme as low as 0.3 per cent.
Pensions secretary John Hutton presented the government's immediate response in a Commons statement.
"The government welcomes the broad framework of the Pensions Commission's findings and recommendations," he said.
However he set out five tests against which the proposals would be judged, centring around fairness and affordability.
The full report follows publication of interim findings last year which set out the scale of the UK's future pensions crisis of rising life expectancy but declining rates of fertility and savings.
"There isn't a crisis now but there is within two generations' range," Lord Turner said.
"People are living longer and that is a marvellous thing, only becoming a problem if we fail to think through the consequences."
He accepted that public expenditure on pensions would have to rise from 6.2 per cent of GDP today to between 7.5 per cent and eight per cent by 2045, depending on the state retirement age.
But he said the alternatives were that: "Either the poorest pensioners will become poorer relative to average earnings.
"Or we can accept a more relentlessly means tested system."
