Tory pension plan endorsed by ABI - Pensions - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Tory pension plan endorsed by ABI

Tory pension plan endorsed by ABI

Category: Pensions

Updated: 06/10/2009
First Published: 06/10/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Conservative plans to raise the state retirement age to 66 for men by 2016 has been commended by the Association of British Insurers (ABI).

At their Manchester conference yesterday, the Tories said a review to look at raising the state pension age for males would be set up if they won power in the General Election next year.

Such a move would save the UK billions – as much as £13 billion a year according to some estimates.

The retirement age for women would not be raised to 66 at the same time, although a move towards that target after 2016 has not been ruled out.

"With people living longer, more active lives, it is right that the pension age should rise. This measure was first proposed in the Turner reforms and enjoyed political consensus, so the Conservatives are to be commended for bringing it forward," said Maggie Craig, director of life and savings at the ABI.

"Action is needed now, across the political spectrum, to deal with undersaving and people living to increasing ages in the future. Both will put a huge strain on the pensions system.

"This bold move from the Conservatives is a good first step - in contrast to the Government, whose decision to delay full implementation of their own pension reform programme risks damage to the whole spectrum of UK pension provision."

However, the policy has not been universally welcomed; Dr Ross Altman said the plans appeared not to have been carefully thought through and that a simplification of the pension system, rather than simply raising ages, could potentially have significant savings.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Have you lost track of your pensions?

The changing nature of the jobs market means it’s highly likely that you’ve got more than one pension pot, but the question is, do you know where they all are? According to research from Aegon, many people don’t.

Grandparents missing out on pension protection

Grandparents who give up work to take care of their grandchildren could be missing out on valuable state pension rights. So, if you're a grandparent taking care of a little one, make sure you’re building up all of the pension that you deserve.

Setting goals could boost your pension pot by £30K

Setting goals can be the key to success in many areas of life, helping motivate you to achieve anything from career progression to building up that house deposit - and if you have goals set for retirement, you could boost your pension by £30,000.
 
Close