Former conservative party leader Ian Duncan Smith believes that the national age of retirement could rise to 68 years quicker than has currently been forecast.
Before the recent election, and the forming of the coalition, the Conservatives outlined plans to raise the retirement age in 2016, up to the age of 66. The previous Labour Government wanted to see the pension age reflect modern life expectancy, with a plan to raise the age to 66 by 2024 and then up to 68 by 2946.
However, with a new government now in place these plans have accelerated, and Mr Duncan Smith, in an interview conducted by the Daily Mail, says that the raise will happen even quicker than expected, and he believes that this is the right thing to happen: “The current plan to raise it to 68, we think could be accelerated. It seems silly to wait. We will do everything to help people back in to work – retraining, help with interview – but in the end we expect people who can work to take the jobs that are offered to them. If they don’t their benefits will be incrementally cut.”
He added that “We have to make the argument for it sooner. The truth is deferment of one year will add one per cent to GDP (national output) and it will add up to ten per cent on your pension pot.”
The news of a later retirement has not gone down well with the British public, with many feeling that the increases will come too early.
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