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Tories set to raise pension age from 2016

The Conservative Party has announced it would raise the state pension age for men and women from 2016, 10 years earlier than planned.

Shadow Chancellor George Osborne will announce the proposals today as part of his speech at the Tory conference in Manchester.

The state pension age for men will rise from 65 to 66 in 2016, rather than in 2026 as planned.

The party will review the case for women who are already scheduled to see their state pension age rise to 63 by 2016.

The change is expected to save £13bn a year.

Osborne will say: “This is another one of those trade-offs any honest government has to confront. All parties accept that to afford that with an ageing population, the state pension will have to rise.

“The women’s pension age is already set to start rising next year to 65, and then in 2026 the pension age for men and women will go up to 66. Most experts…now think that is too far off.

“Our aim will be to bring forward the date when pension age rises. We will ensure that no increase will happen until the second half of the next decade, in the Parliament after next.”

Osborne will announce a review on how to implement the plan. FSA chairman Lord Turner has been suggested as a good candidate.

Association of British Insurers director of life and savings Maggie Craig says: “It is right that the pension age should rise. This measure was first proposed in the Turner reforms and enjoyed political consensus so the Conservatives are to be commended for bringing it forward.

“Action is needed now, across the political spectrum, to deal with undersaving and people living to increasing ages in the future. Both will put a huge strain on the pensions system.

“This bold move from the Conservatives is a good first step – in contrast to the Government, whose decision to delay full implementation of their own pension reform programme risks damage to the whole spectrum of UK pension provision.”

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Comments

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

  1. Just lost my vote…
    So many incredible statements and madcap ideas. Is anything they are saying a vote winner? Ministers are having a 30% increase in their pension entitlement while the great unwashed have to forget about their pensions just in case they are taken away at the last minute whether they expected from private or state sources. How about the proposals for scrapping the FSA and shoving IFAs into a Consumer Protection Agency where they will be the only bear the consumer lobby can bait? Does it get get worse each day? Or am I only dreaming, who sang that.

  2. Tories set to raise pension age from 2016
    Sorry. Totally lost why they have to have different pension ages for women and men? What’s being male or female got to do with whether or not someone wants to retire, or wants to work on? Why do they have to bring a person’s sex into it? Totally puzzled:)

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