View the article online at http://citywire.co.uk/money/article/a409333
State pension age to rise to 66 as early as 2016
Default retirement age also set to be scrapped in major shake-up of pension system.
The state pension age for men will rise to 66 as early as 2016 – ten years earlier than originally planned, the government is expected to announce today.
Meanwhile the default retirement age – under which companies can force employees to retire at age 65 – will also be scrapped, under proposals set to be unveiled by work and pensions secretary Iain Duncan Smith and pensions minister Steve Webb.
Under Labour the state pension age was to rise to 66 by 2024, before climbing to 67 by 2036 and 68 by 2046. However, the new coalition government has decided that more drastic action is required and that people should be allowed to work as long as they want to.
‘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,’ Duncan Smith told the Telegraph today.
‘Now is absolutely the right time to live up to our responsibility to reform our outdated pension system and to take action where the previous government failed to do so.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.’
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