Partner Article

Tories plan rise in pension age

Shadow chancellor George Osborne has outlined plans to raise the state retirement age to 66 by 2016.

If elected, the Conservatives aim to look at raising the pension age for men to 66 from 2016 at the earliest, to cut debts and pay for linking pension rises to earnings.

They have not ruled out raising women’s state pension age to 66 but say doing so by 2016 is “out of the question”.

Labour plans to raise the pension age to 66 between 2024 and 2026 but the Conservatives say this is not “ambitious enough” given rising life expectancy and the scale of the UK’s debts.

Bringing the move forward would mean many people, particularly those aged between 49 and 59, having to work a year longer before qualifying for a state pension.

Alan Hall, Region Director at EEF, said: “Reviewing the timetable for raising the state pension age seems a sensible approach in view of increasing longevity and the need to cut the public sector deficit.

“If an earlier date for increasing this from 65 to 66 is accompanied by a clear commitment about when the basic state pension will be increased in line with average earnings rather than prices, it should be possible to maintain broad support for this change.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .