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Tory pension plan endorsed by ABI

Tory pension plan endorsed by ABI

Category: Pensions

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

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 It is now over 6 months old so the content may be out of date.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.

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