Azara Blog: UK state pension age is probably going to increase

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Date published: 2005/11/17

The BBC says:

A rise in the basic state pension and an increase in the age at which it can be claimed is to be recommended by the Pensions Commission later this month.

The commission's report will call for a more generous state pension but a rise in the claimant age to 67, according to the Financial Times newspaper.

A new national savings plan, in which individuals will automatically have to enrol, will also be recommended.

The commission has been tasked with finding a blueprint for pension reform.

A Pensions Commission spokeswoman said the newspaper article was speculative and that it would not be commenting ahead of the report's publication on 30 November.

According to details of the report obtained by the FT, the commission will call for a generous rise in the state pension.

This should rise from the current £80 a week to closer to the £109 a week paid out through the means-tested minimum income guarantee.

To pay for this increase, the report will recommend that the age at which people can claim the state pension should rise from 65 to 67.

The proposals, to come into force after 2020, would affect everyone currently under the age of 50.

There is also a suggestion that the Turner Commission has been discussing scrapping the State Second Pension scheme to help pay the cost of their proposals.

Well so far this is just gossip, but it sounds plausible, and is mostly the kind of obvious advice anybody halfway sensible would make. Although they should bite the bullet and increase the claimant age to 70 (and possibly higher in future). People live much longer now and if you live much longer you have to expect to work much longer. Of course the government might just ignore all this advice, they have enough trouble on their hands already.

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