Osborne defends raising state pension age

Britain's state pension system faced collapse if action had not been taken to raise the age at which people will be able to retire, George Osborne has claimed. yesterday he announced it would be raised to 68 in the mid-2030s and 69 in the late-2040s.

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Osborne defends raising state pension age

Chancellor George Osborne Credit: PA

Britain's state pension system faced collapse if action had not been taken to raise the age at which people will be able to retire, George Osborne has claimed.

Yesterday, the Chancellor announced the state pension age would be raised to 68 in the mid-2030s and 69 in the late-2040s.

"The reason we do this is because our country is getting older and we want to go on being able to afford really good pensions for people. There is not a bottomless pit of money," he told BBC1's Breakfast.

Teen 'not very pleased' with retirement age changes

The Government has said that future changes in the pension age will be based on the principle that workers should expect to spend about one-third of their adult lives, on average, in retirement.

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Filming with 19 year old Jordan who's been working since he was 15 - unsurprisingly he s not v pleased he won't get a pension for 51 years

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Workers should expect to spend 1/3 life in retirement

People now in their forties will have to wait until 68 to receive the state pension after it was revealed that the date of the planned increase in the retirement age is likely to be brought forward from 2046 to the mid-2030s.

George Osborne has announced that those in their 40s will have to wait until 68 for a state pension. Credit: Press Association

And a further rise in the state pension age to 69 is expected to take place by the late 2040s, hitting people now in their early thirties, the Government has said.

The delayed retirement dates will help save around £400 billion from the national bill for pensions, on top of the more than £100 billion already banked from planned rises to 66 by 2020 and 67 by 2028, which are unchanged.

The Government said that future changes in the pension age will be based on the principle that workers should expect to spend about one-third of their adult lives, on average, in retirement.

Osborne is 'winning votes among older people'

George Osborne has announced that the state pension to rise by £2.95 a week from next April, leaving pensioners £800 a year better off from Government measures since 2010.

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Osborne winning votes among older people as he highlights the triple lock that ensures pensions rise. But younger people will work longer

Osborne: State pension to rise by £2.95 a week

The state pension is set to rise by £2.95 a week from next April. Credit: Press Association

George Osborne has announced that the state pension to rise by £2.95 a week from next April, leaving pensioners £800 a year better off from Government measures since 2010.

Pensioners will also be offered the opportunity to make voluntary national insurance contributions to boost retirement income.

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Pension age increase 'was always going to happen'

This was always going to happen, it was just a question of how and when it was unveiled.

There are provisions in the pensions bill for the SPA [state pension age] to be linked to life expectancy.

Currently, the SPA will rise to 67 by 2028 but will then pause before rising to 68 between 2044 and 2046.

This was already widely acknowledged as being too late and too slow.

Given current low levels of private savings and improvements in life expectancy, it was unrealistic for those in their 40s and younger to expect that they wouldn’t see their State Pension Age rise again above age 67.

In reality, many in work today are already unlikely to be able to afford to retire until their 70s, irrespective of when their state pension falls due.

– Tom McPhail, Head of Pensions Research, Hargreaves Lansdown

Planned pension changes will help save £400 billion

Under the new pension plans:

  • People now in their forties will have to wait until 68 to retire
  • A further rise in the state pension age to 69 is expected to take place by the late 2040s, hitting people now in their early thirties

The delayed retirement dates will help save around £400 billion from the national bill for pensions, on top of the more than £100 billion already banked from planned rises to 66 by 2020 and 67 by 2028, which are unchanged.

Bad news now with better news expected tomorrow

by - Political Editor

Possibly as you would have expected we've had the bad news tonight including announcing that they are going to raise the pension age.

So 69 is the top level now which will kick in in the 2040s which will save them a great deal of money and give them a bit of room for manoeuvre tomorrow.

We will get the good news tomorrow. It's an important day for George Osborne the polls say a lot of people do give the Conservatives credit for handling the economy, but they are not sure they will benefit during the recovery - and that's what he has to start to nail down tomorrow.

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