Government says state pension age is rising too slowly

 

Work and Pensions Secretary Iain Duncan Smith says the timetable is too slow

The government says the timetable for raising the state pension age to 67 is too slow.

"We've always said that the timescale left by the last government was too slow," Work and Pensions Secretary Iain Duncan Smith told the BBC.

At the moment, the age is due to rise to 67 in 2036 and 68 by 2046.

The Department for Work and Pensions stressed that no decision has been taken yet but added that an automatic mechanism was being considered.

"The [last] government left us with a deadline in the 2030s and we think that's too late because people's age levels have increased even since they made that announcement," Mr Duncan Smith said on BBC One's Andrew Marr Show

"People are living longer but they're still retiring at the same age, so the purpose now is to look at that, and we're reviewing that to see what might be reasonable, but always giving them good warning about what happens."

'Express train'

There has been criticism of the length of time that women have been given to prepare for the raising of their state pension age in the pensions bill, which is currently before parliament.

The bill raises the pension age for women to 65 in 2018 and then 66 in 2020.

The government has been holding a consultation over the summer into whether further reforms are needed to the state pension age.

Sources quoted in The Observer said that the most likely change would be that raising the pension age to 67 would be brought forward 10 years to 2026.

The government announced in this year's Budget that it wanted to create a new, automatic mechanism for future increases in the pension age, based on regular, independent reviews.

"Everybody knows we are living longer. It is like an express train," pensions minister Steve Webb told The Observer.

"I am even more convinced now than I was a year ago that we are running to stand still on all this stuff."

 

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  • rate this
    +12

    Comment number 178.

    I'm 16 and I'm dreading working until my late 60s (probably mid 70s when I get that old if this continues) - During my working life i'm going to move abroad to enjoy a better retirement and save, save, save so that I dont drop dead whilst operating a checkout at Tescos at the ripe old age of 68 after being forced out of my career because I'm too old.

  • rate this
    -10

    Comment number 173.

    I don't see any justification for not increasing the age to 68 right now, given how long people can expect to live already. Why should I have to pay to subsidise some lazy gits to retire before I will be able to? Especially as I'm paying more NI for my government pension and 10% towards my company pension which I won't get until I'm at least 67.

  • rate this
    +2

    Comment number 166.

    This problem has been known about for 30 or 40 years, but each government has kicked it into the grass, including blue ones. Now suddenly its a big deal, because the coffers are low. It really is pathetic. It is all about dodging the cost. Dodging the cost might be necessary but it is still pathetic. All pressures end up on youth unemployment with a lost future which will lead to major problems.

  • rate this
    +9

    Comment number 125.

    It's all very well raising the pensionable age, forcing people to work longer but how will this affect jobs for the young? I suppose the next drive will be to get everybody to university to prune the youth unemployment figures. Get's them in debt too so most will never be able to save for retirement. Some life they'll look forward to.

  • rate this
    -2

    Comment number 122.

    In general, people are living longer. In general, people expect more than is available. In general people are expecting to have it all now and continue having it all for ever. There is nothing to stop you from retiring at any age - its your lifestyle choice, but don't expect others to pay for it, start saving now.

 

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