The government has announced plans to increase the state pension qualification age for men from 65 to 66 as early as 2016. The previous Labour government had planned to do this a decade later, by 2024.
Plans to Increase State Pension Age
Iain Duncan Smith, former Conservative Party leader and current Secretary of State for Work and Pensions, as well as pensions minister Steve Webb are preparing to outline more details on the plans on June 24. Alongside the plans to raise the state pension age, the government also plans to make it illegal for employers to dismiss their workers at the current retirement age of 65.
Speaking to The Daily Telegraph for an article published on June 24, Mr Duncan Smith said “People are living longer and healthier lives than ever, and the last thing we want is to lose their skills and experience from the workplace due to an arbitrary age limit,” He went on to say that “Now is absolutely the right time to live up to our responsibility to reform our outdated pension system and to take action where the previous government failed to do so. If Britain is to have a stable, affordable pension system, people need to work longer, but we will reward their hard work with a decent state pension that will enable them to enjoy quality of life in their retirement."
Nick Clegg, the deputy Prime Minister, defended the decision on the BBC's Breakfast show, stating
stating that with the measures proposed "are reinvigorating what retirement means". Mr Clegg also said "I think the idea of having an increase by one year in the retirement age is accepted. It's just a question of how far you bring it forward."
Criticisms of the Planned Changes
However, a number of groups have come out against the planned changes already. According to The Independent, the general secretary of the GMB, Paul Kenny, said that "To force someone who has done a lifetime of toil on building sites, farms or in factories to work until they are 66 is completely unacceptable. What on earth are the Liberals doing in this coalition?"
The BBC reported on June 24 that Bob Crow, the general secretary of the RMT union stated "As well as hitting pay, living standards, public services and jobs, the latest assault from the government is work until you drop."
In the Budget that was unveiled by Chancellor George Osborne, the state pensions would increase in line with prices, average earnings, or by 2.5%- whichever is the largest change.
Sources:
BBC News-'Pension Age: Ministers to speed up rise to 66'
The Independent-'Men's pension age to 66 from 2016'
The Guardian-'State pension age to rise to 66 in 2016'
The Daily Telegraph-'Pension age shake-up could see people working into their seventies'
The Daily Telegraph -'Pension age shake-up will 'reinvigorate retirement' claims Nick Clegg
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