Government to announce state pension age increase
Work and pensions secretary, Iain Duncan Smith, is expected to announce today that the state pension age will rise to 66 for men – as early as 2016.
Furthermore, the Government is to raise the option of extending it further, perhaps to 70 and beyond in the following decades.
The former Labour Government’s policy was to lift the pension age to 66 in 2024 and then gradually to 68 by 2046.
However, the new coalition Government wants to move faster.
In addition, people will be encouraged to work for longer as the default retirement age is set to be scrapped.
Currently, an employer has the legal right to terminate the employment of a 65-year-old – something which many have been calling on the Government to review.
A recent survey conducted by charity, Age UK, found that two-thirds of people support plans to scrap the default retirement age.
The survey, which questioned more than 1,000 people, found 70% wanted to continue working beyond retirement.
Mr Duncan Smith, quoted in the Telegraph newspaper, said: “People are living longer and healthier lives than ever, and the last thing we want is to lose their skills and experience from the workplace due to an arbitrary age limit.
“If Britain is to have a stable, affordable pension system, people need to work longer, but we will reward their hard work with a decent state pension that will enable them to enjoy quality of life in their retirement,” he added.