Cameron backs automatic SPA rises
David Cameron says he “loves the idea” of increasing the state pension age automatically as life expectancy increases, suggesting it could make it easier to make changes to public sector pensions in future.
Speaking at a summit in Stockholm yesterday, Cameron said the UK faces an “apartheid” between expensive public sector pensions, with low retirement ages, and private sector schemes where employees continue working for longer.
According to the Daily Telegraph, he told delegates he “loves the idea” of automatically increasing pension age.
He said: “We do have this problem with the public sector pensions system where you have got a lot of resistance to changing public sector pensions, some of which have very low retirement ages.
“We could end up with quite an apartheid system where people in the private sector have this flexible ethic, they go on working they change the way they work. But in the public sector, we have quite a cut off and a very expensive public sector pensions system.”
At last March’s Budget, Chancellor George Osborne announced the Government would look at a “more automatic mechanism” for increasing the state pension age. In November, millions of public sector workers went on strike over changes to their pensions to make them work longer, pay more and get less.
Cameron backed reforms being introduced in Norway which will see the state pension age rise automatically with longevity and see those who wait longer to claim their pension receive more.