View more on these topics

L&G: Pension reforms are ageist


Legal & General has accused the Government of ageism after ministers tabled concessions to public sector pension reforms that protect everyone over the age of 50.

Last week, Treasury chief secretary Danny Alexander tabled two significant concessions in discussions with public sector unions as policymakers try to avert planned strike action on November 30.

In a statement to the House of Commons, Alexander outlined plans to increase the cost ceiling for Government spending on public pensions and introduce “transitional arrangements” so no one within 10 years of retirement will see any change in when they retire or any decrease in the amount of pension they receive.

He said: “I believe this package is affordable. I believe it is also fair, not just to public sector workers, but delivers significant long-term savings to taxpayers who will continue to make a significant contribution to their pensions.”

L&G pensions strategy director Adrian Boulding says: “This concession may be found to be ageist. The Government is saying that if you are an older person you will not be any worse off under the reforms, but if you are young you could be.

“People who are close to retirement have already benefited the most from the previous, more generous system. It does not seem to me to be fair to single out older workers for protection without offering the same protection to younger workers.”

But Hargreaves Lansdown head of pensions research Tom McPhail says: “I do not think the concession is ageist. These kind of reforms will inevitably result in discrepancies but I think younger employees are more likely to be resigned to such changes.”

A Treasury spokesman says: “It is right that those closest to retirement, whose plans are farthest advanced and have least time to adjust, should receive this protection.”


News and expert analysis straight to your inbox

Sign up


There are 2 comments at the moment, we would love to hear your opinion too.

  1. L&G how old are you?!!!!!
    Something has to give when these adjustments are done. And L&G’s and the whole industry’s annuity rates for the older person hasn’t given anything. What was done? NOTHING…..

  2. Flat rate annuities for all irrespective of age, sex or state of health because surely anything else than this is ageist, sexiest etc etc.

    Let me just check the L&G annuity website now…….

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm