Conservatives plan rapid rise in retirement age

| October 6, 2009 | 0 Comments
Conservatives plan rapid rise in retirement age

If the Conservatives win the next election, they will raise the state pension age for men from 65 to 66 from 2016.

Furthermore, the Conservatives have not ruled out an increase in the pension age for women towards 66. Under Conservative policy, the state retirement age for both men and women is set to be brought more closely into line.

According to Shadow Chancellor, George Osborne, the move is in a bid to control UK debt, which the Tories see as a major issue.

Sources say the increase would save £13 billion per annum from the budget deficit, with an extra £130 billion in total being raised by the proposals.

Mr Osborne is expected to announce the plans in a speech to his party in Manchester today and is expected to say the plans for the rise will be “how we can afford increasing the basic state pension for all”.

Currently, the state pension age is 60 for women and 65 for men and the Labour Government is planning to increase the state retirement age for men from 65 to 66 but not until 2026.

Government legislation means that the state pension age will then rise to 67 in 2036 and 68 in 2046.

However, a recent report by David Norgrove, chairman of the Pensions Regulator, said he believes the retirement age could exceed 68 years of age in years to come

Meanwhile, commenting on the Conservative’s proposals, Shadow secretary for work and pensions, Theresa May, told BBC Two’s Newsnight that the UK’s “ageing population” made it necessary to look “at what point it is appropriate for people to be receiving their state pension”.

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