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
    +3

    Comment number 189.

    When I was 18, I started paying my contributions to my State Pension. This was effectively a contract made between me and the government. Now, without my doing anything wrong, I'm to be cheated out of my contractual right to retire at 65. This is wrong. It is immoral. It feels illegal. Why am I being punished for something politicians and bankers have done?

  • rate this
    +4

    Comment number 188.

    more tory lies about the pension age. said they weren't going to change it but they will. same with the NHS, the welfare state. same old same old. If these clowns have their way non of us will be getting a pension.

  • rate this
    +1

    Comment number 187.

    I didn't realise how recent a phenomenon a 'retirement age' was until my dad was interviewed by Port Cities a few years ago:
    http://www.portcities.org.uk/london/server/show/conMediaFile.5456/Patsy-Collins-Recollections-of-changes-in-the-Port-of-London.html
    I would like to see 'retirement age' go: it reminds me of Logan's Run.

  • rate this
    +5

    Comment number 186.

    Just remember-the older the retirement age,the more chance you have of dying before you get there,so you'll have made contributions,but the gov't pays out nothing.I bet this won't apply to MP's(same as the new civil service pension reforms don't apply)'we all live longer' -spin- they just don't want to collect the £120bn tax gap,and tax all the rich fiddlers and bankers who offshore their assets

  • rate this
    +4

    Comment number 185.

    Bankers and those in the City and Politics retiring early, on huge bonuses and privileged conditions.

    Boiler suits told to work until they drop...

    This is an utter disgrace.

    However "WE" voted them in. (or not.!).

    When shall we learn?.

  • rate this
    -1

    Comment number 184.

    The large issue is that there are too many people who are unemployed or more importantly underemployed and needing Government help. If we were to push ahead and get this percentage of the population working or not requiring such a high amount of money from the Government taxes, then we would have enough money to hand out the State Pension at 60 and not be pushing it higher and higher.

  • rate this
    -1

    Comment number 183.

    Hi jmdr,

    Looks like you have your head screwed on the right way. If you start saving now, avoid frittering money and do some investing you could be well placed to retire at a sensible age.

    I've been a good saver but I reckon the money I've frittered here and there on small things could have added up to a tidy extra sum if invested modestly.

    Stick with your plan and good luck.

    Regards

  • rate this
    +4

    Comment number 182.

    Note the Tories here are talking about the age you finally get your pension, NOT the age when you stop work. Redundant in your 40s you'll never work again, minimum wage if you're lucky. Now you get 30 years before you get your pension, not 30 years alive after it.

  • rate this
    -2

    Comment number 181.

    Way to sensationalize a rational attempt to solve a problem that isn't going away, with your emotional outburst. Maybe you should consider tabloid journalism

  • rate this
    +2

    Comment number 180.

    Only answer to this Government and the grip of the CITY.....

    Join a Workers Union right now.

  • rate this
    -2

    Comment number 179.

    175.
    ivorjhall
    18 Minutes ago

    Way to sensationalize a rational attempt to solve a that isn't going away with your emotional outburst. Maybe you should consider tabloid journalism

  • 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
    +2

    Comment number 177.

    Banks not being allowed to fail is symptomatic of a failed free market.

    The free market is now no longer...only an illusion of one.

    Karl Marx got it spot on when he said that Capitalism would end up robbing the middle classes, but he went on to say that this would lead to revolution...not yet anyway...

    At the present time, Capitalism seems to be robbing the working man's conditions.

  • rate this
    +2

    Comment number 176.

    If the government need to cut the pension bill then raise the pension age for all public sector pensions including those who have not yet retired to 65. For those with jobs where age is an issue let them find another job. That would bring them in line with the private sector/bankers to whom they always refer. Also make people who do retire early pay national insurance until normal retirment age.

  • rate this
    +3

    Comment number 175.

    Of course people are retiring too early, just as the wealthy are paying far too much tax and those on benefit should all be breaking rocks for their money. Whilst we're at it, bring back hanging, the birch, the stocks, slavery and take the vote away from women and the poor! Hey, we all remember the Good Old Days, yes? When people who had nothing at least had the decency to die young? Tories? Bah!!

  • rate this
    +3

    Comment number 174.

    Retirement age of 67 doesn’t protect an individual from being managed out of a job at 55, but it will protect the government from the differential cost of ‘scrounger’ job seeker and ‘deserving’ pensioner as we go into a period of mass unemployment.

  • 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
    +3

    Comment number 172.

    It is all very well thinking that it is easy to push retirement backwards. It may suit the pension companies because what will happen is that people will die a lot quicker post retirement. However, an alternative would be that once people reach a certain age they move into a new career. Fireman and police are not effective after 55+ because of the nature of the job. Teachers also for example..

  • rate this
    +8

    Comment number 171.

    All this means is that you are not entitled to the pension you paid for all your working life; if a private insurance company acted in this way, there would be uproar.

  • rate this
    +4

    Comment number 170.

    Pension Age rising too slowly....Translation...Help..not making the amount of money out of these people we thought we would make.
    SOS Please come to our rescue.
    And the sellers of the product, think."Thank goodness we have a Political System, where our money is more important than any other persons money"
    And our Politicians think,"If we do not look after them..Goodbye Donations"

 

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