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Millions will work until 68 for state pension, say Tories
Paul Waugh, Deputy Political Editor23 Sep 2009
Millions of Britons could be required to work longer to qualify for a state pension, David Cameron has warned.
The Tory leader hinted that a Conservative government may fast-track plans to raise the retirement age from 65 to 68.
Underlining his priority of tackling the dire state of public finances, Mr Cameron also suggested that the Tories would curb public sector pensions.
The age at which people will receive their state pension is already due to rise from 65 to 66 by 2026, to 67 by 2036 and 68 to 2046.
But former Confederation of British Industry chief Lord Turner, who drafted the current timetable as part of his pensions review, recently declared that he wished he'd been bolder in accelerating the dates.
Mr Cameron hinted that he agreed with the peer. “Lord Turner has said that if he had his time over, he would have been more ambitious,” he told a Financial Times conference.
He added that raising the pension age was an issue “where you really do want to proceed, if you can, with consensus”.
The Tory leader stressed that despite the ballooning public deficit, he would restore the link between earnings and the basic state pension. It would be a “false economy” not to go ahead with the move.
The state pension currently rises in line with inflation, but Labour has said it will restore the link to earnings by 2015 at the latest.
Treasury forecasts predict the move will cost £700 million in the first year and £1.3 billion in the second, with further rapid rises to follow.
Ministers believe this will double the value of the state pension by 2050. But the move is a deliberate sweetener to persuade the public that they will have to work longer to get the higher pension.
Joanne Segars, chief executive of the National Association of Pension Funds, said Mr Cameron's comments were “very significant in the light of the way everyone has been talking about the need for cuts”.
She added: “It is very welcome. Restoring the link is an integral part of the deal that raised the state pension age in return for a stronger state pension and less dependence on means-testing.”
Several recommendations made by Lord Turner's Pensions Commission three years ago became pension policy and law. They included the view that increases in the state pension age should be linked to rising life expectancy, that the state pension be linked to average wages and not prices, and the introduction of personal accounts for those without access to company schemes.
The link between pensions and earnings was broken in the early Eighties and for many years governments said it was too expensive to restore.
Reader views (14)
Although I am 66 I want to find a job, I like work it keeps me busy, and I also am healthier as I work fast. In fact recently I worked for a job agency and the place where I worked, the full time staff told me to slow down, and when I went out in the firms van to a regular customer I was back too quickly for some. Many pensioners have had their own businesses and can work on their own inishitive (sorry) and will work for minimum wage. Give me a job.
- Jim Allan, Lake District, 24/09/2009 08:10
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William - London; As I said before some very tough choices must be made, everybody in England cannot be supported indefinitely.
Many disabled people can and would welcome contributing to the wealth of the nation. Those with a good National Insurance record can show that they have contributed and those doing voluntary work should attract National Insurance credits.
The time is arriving very soon where people will need to make near impossible choices:- do we continue to allow an increasing population with no national wealth generation to continue to multiply, do we continue to aid any person that needs it no matter what the chances of non-contributory life, dos the whole nation suffer for the benefit of the needy few.
If you don’t like these choices then you provide alternatives, don’t pontificate without solutions. If nothing else stand by your convictions and donate all of your resources to aid these people and suffer along side them, that will be the only way soon !
- James, City of London, 23/09/2009 17:37
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I have just read the comments on this site and see that Mr and Mrs Neanderthal had more children than we thought; amazingly, some have survived the extinction of that species of hominid.
Rob of London, can you not be bothered to do some simple checking on the internet before you rant and display your ignorance? The difference in retirment dates for
men and women goes right back to the introduction of the first old age pensions in 1911. However, the ages are being equalised in stages over the next few years. Just go to the Department of Pensions website for details.
Reuben, that means everyone else has to work to 70 too, including you. But I assume that you qualify for a pension already being at least 35,000 years old.
Oliver of Bedford, if you read the 1942 Beveridge report you will see that you are wrong.
And finally, James of the City and your suggestion that there should be no benefits for anyone not contributing the the wealth of the country. I am pleased that you think that all severly disabled and seriously ill people should be deprived of help and presumably starve to death. I bet that goes down a bundle with them. Tell you what, why don't we gather up all the mentally ill and defectives, put them in a building - let's call it Bedlam - and they can earn their keep by being a tourist attraction?! It would be a real laugh of a day out.
- William, London, 23/09/2009 15:23
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You could get around this by becoming an MP.
- Shallotman, Basildon, 23/09/2009 14:44
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I think that the eventual age range for the state pension will be closer to 71-73.
As for MP's and Cabinet Minister's "pensions" perhaps they should only qualify for these if they were successful whilst in office? The "true" decision on whether or not the MP was successful or not could be determined by an X-Factor style telephone voting scheme.
When it comes time to determine whther or not the MP gets a pension (i.e. when they stand down from office or are sacked) then the public will be given two numbers to call i.e. one for "successful" and one for "unsuccessful". Clearly, it would ONLY be one vote per caller. The government (i.e. the people) would pocket any profit from the voting calls.
In this manner, Britain could easily rid itself of wasteful costs spent on useless politicians! All of a sudden, local MPs would become accountable for their actions as would ALL those in Central Government.
Job DONE!!!
- Fraser, Telford Park, 23/09/2009 13:43
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State pensions were originally intended to provide for infirm ancients, not to allow people to spend decades as ladies and gentlemen of leisure. Given the vast improvements in health over the last century a state pension age in line with the original purpose of the scheme would be around 80.
- Oliver Chettle, Bedford, 23/09/2009 12:43
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Actually - could someone please explain to me why the retirement age differs from men to women. There must have been a reason, I was just wondering whatever it was and if it still held true.
- Rob, london, 23/09/2009 11:51
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Time to reduce MPs pensions to a maximum of double that of state pensions.
- Dave, london, 23/09/2009 11:19
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Ensure your government has jobs for the over 60+ people, as the age discrimination act is being ignored by employers. The future does not offer the benefits of good lifestyle living forcing people to work well into their 60's - we know the answer to that, Tax, Tax, Tax.
- Vasoula, London, 23/09/2009 10:35
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Nice one David.
With the country in recession and a long recovery in prospect, remind us just how many unemployed there are? How many university leavers are now and annually for the forseeable future, likely to have a hard time finding a job?
- Ian, London, 23/09/2009 10:25
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Only if there are jobs available.
It is likely that with the loss of the UK manufacturing base, the poor economy and the ever growing population there will not be jobs for the majority of people
We cannot afford the benefit system and so some drastic choices must be made. No benefits for people who do not contribute to the wealth of the country. One child per person. Stop all immigration and remove illegal’s their children and their relatives. Punish the legal immigrants when illegal relatives enter the country by removing the passport and giving a conditional licence to stay. Reward entrepreneurs by giving a scaled tax relief to the number of people they employ up to 300.
This is the only way out, uncomfortable yes, but realistic !
- James, City of London, 23/09/2009 10:23
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Oh! Whoopeeeeeee!!! The Harperson and her ilk will need to work until they are 70 years old.
That has made my day!!
- Reuben Camara, Morecambe Compound, EUSSR, 23/09/2009 10:19
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Presumably this will include BOTH men and women? A quick question for Harriot slayer-all-of-things-unequal.... why are women allowed to retire 5 yrs before men? And is that not BLATANT sexual discrimination? And why have you not done a single thing about it?
- Rob, london, 23/09/2009 09:39
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Who didn't see this coming? I was already fully prepared to be working to age 70.
- Bob, Cheam, 23/09/2009 09:35
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