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State pension age to increase every five years

The coalition government is planning to increase the state pension age every five years and link payments to life expectancy for the first time, according to The Times.

State pension age to increase every five years

The coalition government is planning to increase the state pension age every five years and link payments to life expectancy for the first time, according to The Times.

A government source told the paper that new laws would mean in 25 years the pension age will have risen to 70, affecting all workers now aged 40.

A source at the Department for Work and Pensions said: ‘We don’t want to have to revisit this issue year by year.

‘The ideal would be a formula similar to the one used in Sweden, that we can pass into law.’

It is estimated that around £13 billion a year would be saved by pushing up the retirement age.

Work and pensions secretary Iain Duncan Smith (pictured) has already announced plans to increase the state pension age to 66 from as early as 2016, ten years earlier than originally planned.

The government also plans to scrap the default retirement age, under which employers can force employees to retire at 65.   

10 comments so far. Why not have your say?

Keith Dillingham

Jun 25, 2010 at 10:21

This is the issue on which I most agree with the aim of the present government. As we live longer and an ever higher percentage of the population are over 65 so successive governments have shied away from the demographic timebomb of how we will pay for our old age. Raising the retirement age is unpopular and it is good that the new coalition has the courage to tackle it. If 50 is the new 40 then why not 70 as the new 65?

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Bear

Jun 25, 2010 at 10:25

Common Sense prevails, by 2085 the pension age will be 80 and no default retirement age..and surely no more sex discrimination?

In 2001 the average life expectancy for males was 75 and females 80

In 1945 when the Welfare State started the average life expectancy was 63 for men and 68 for women, in other words the average male died before reaching retirement age.

By 2085 we'll be back to issuing pensions in line with 1945 life expectancy, so long as we don't go on living any longer.

Which means those born in the UK today will in 2085 will be 75 with five more years ahead of them before they can expect any state pension and maybe six if the age is raised to 81 in 2090.

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Anz

Jun 25, 2010 at 10:28

People need adequate warning of theses changes so that they can choose to spend, and work on later, or save so that they can retire when they want to on their own savings. We should be encouraging people to look after themselves and not be totally reliant on the state.

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Ivor Nestegg

Jun 25, 2010 at 10:41

This is great theory but how are people supposed to work until they are 80 when there is no work even for young people at the moment?

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Jonathan

Jun 25, 2010 at 12:08

I don't understand why we have to wait so long until women are on an equal level with men in terms of pension age.

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J

Jun 25, 2010 at 12:11

I guess that a great proportion of the working population would welcome a higher retirement age as for myself I can not see me doing practically nothing from the age of 65. Individuals with good savings and high pensions may not mind retiring at 65 though. But we need to accommodate and find jobs for the younger generation too, thus creating jobs is paramount.

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Anonymous 1 needed this 'off the record'

Jun 25, 2010 at 13:18

There should be a formal State Pension contract between the individual and the government to enable pensions planning. Government should be compelled to compensate individuals when they dont meet there side of the contract.

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Colin Newbury

Jun 25, 2010 at 13:55

If ...

In 2001 the average life expectancy for males was 75 and females 80

Surely, the retirment ages of men and women should be reversed!

I for one am fed up with the sexual bias against men.

Friday night at the local Disco, "Women free, men 5 pounds"

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Peter O'Hara

Jun 25, 2010 at 18:36

I would guess that Keith Dillingham is no older than 30. How would he feel if he'd worked full time for 40 years and a new Government suddenly took away a year of his pension. I've worked from the age of 16 to 56 paying tax and NI all that time and now the goalposts have been moved. Wait until you're 65 and looking forward to another 5 years at work Keith !

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Anonymous 2 needed this 'off the record'

Jun 26, 2010 at 14:08

Is everyone stupid? How many of us oldies will be made redundant, then claim benefits? How many will become unfit for work (many illnesses afflict us oldies), then claim benefits? How many will have to become carers for an ill partner, then claim benefits? How many youngsters will NEVER be able to get a job, then claim benefits?

The benefits bill will be huge. AND.....when do peple get a chance to enjoy some time off after working many many years and contributing to the system?

Isn't government meant to be FOR the people. I hope that the grey generation being deprived of their hard earned 'retirement' vote correctly in the next election.

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