Chancellor George Osborne says it is essential that proposed reforms to the state pension age and public sector pensions are completed.
Speaking at the launch of the IMF’s report on the UK economy this morning he said calls from the IMF to stand by the reforms have convinced him the need to see them through.
The IMF’s report says accelerating increases to the state pension age and public sector pension reforms proposed by the Hutton Commission, which include higher contributions and a switch to average salary schemes, will help redress longer term fiscal imbalances and encourage medium term growth.
Osborne says: “I take from the report that we need to press on with medium and long-term reforms to improve the sustainability of our public finances. The IMF today explicitly reference the reforms we have proposed to the state pension age and John Hutton’s proposals on public sector pensions. It is essential we now see these through.”
Current plans for increasing in state pension age will see men and women’s state pension age equalised at 65 in 2018 and rise to 66 by April 2020, more quickly than was previously planned.
Labour have vowed to fight the acceleration.