Home / Insights / Blog / Pensions age timetable may be accelerated

Pensions age timetable may be accelerated

Pensions age timetable may be accelerated

The Coalition government wants to push back the state pension age to 68 sooner than previously planned because "it seems silly to wait", according to reports.

Work and Pensions Secretary Iain Duncan Smith said the move was being considered as ministers attempt to tackle Britain's record deficit.

Under the previous Labour government, plans were announced to increase the retirement age to 66 by 2024 and to 68 by 2046.

But Mr Duncan Smith told the Daily Mail: "We have to make the argument for it sooner. The truth is deferment of one year will add 1% to GDP and it will add up to 10% on your pension pot.

"The current plan to raise it to 68 … we think could be accelerated. It seems silly to wait."

During their election campaign the Conservatives said they would hasten plans to increase the pension age to 66, and this issue is currently under Government review.

However, there has been speculation that it could accelerate the 68 pension age plan to 2036, 10 years sooner than Labour's planned timetable.

IBB's Employment team provides advice on the employment aspects of all major business decisions. For advice, contact a member of the team, call us on 08456 381 381 or email enquiries@ibblaw.co.uk.