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Pension Regulator: State retirement age will 'undoubtedly' rise
by Chris Marshall on Aug 10, 2009 at 08:48
Another senior figure has indicated that the state retirement age will have to rise, with Pension Regulator head David Norgrove saying that a significant rise will ‘undoubtedly’ happen.
Speaking to the BBC, Norgrove said that ‘people are going to have to work longer’ as life expectancy continues to soar. He gave the example of a 45-year-old man, whose life expectancy is rising by six hours a day.
The current state pension age is 60 for women and 65 for men. This will increase for both men and women gradually to 68 in 2044.
Norgrove’s comment on the necessity of this age increasing again, echoes that of Lord Adair Turner, the current Financial Services Authority chairman who penned a key report on pensions reform in 2005 which paved the way for the increase to 68. Turner recently said his proposals weren’t radical enough and that he now reckons the state pension age should increase to 70.
Unions have in the past pledged to oppose all attempts to raise the state retirement age.
Final salary schemes
Contrary to many experts, Norgrove does not foresee the end for final salary pension schemes, despite the rash of companies rushing to shut them down to save cash. Many people do not realise just how long the schemes have been in decline, Norgrove said, adding that the number of schemes peaked back in 1967.
‘I think there is a good chance we’ll see a core of companies offering final salary schemes,' he said.
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1 comment so far. Why not have your say?
Steve Holloway
Aug 10, 2009 at 13:50
Back in 2001 I had been invited along to take part alongside the Dept Of Work & pensions at a local hotel.
The auditorium had a cross section of the public there including company directors, self employed, people with employer sponsored pension schemes, people with personal pensions and people with final salary schemes (mostlt DWP employees).
We were split into threee groups and sent to briefing rooms where each group was given the same brief of how to keep people working beyond the age of 75yrs!
There is no doubt that as a nation we are not saving enough, however there is great inequality with the provisions for retirement with government workers being funded by the tax payer!
This issue needs to be addressed immediately.
More positive action needs to be taken to encourage people to invest for their future, rather than failing to plan.
The Government should also come clean with the reasons behind them implementing Personal Accounts and auto enrolment, being to reduce the numbers who would be able to claim state benefits in retirement, rather than accumulating sufficient wealth to live.
It seems to be a case I of I am alright Jack so forget the rest of you, especially from MP's!!
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