The Trade Union Congress (TUC) has rejected claims that the state pension age in the UK should be increased to 70 as soon as is 'reasonably practical'.
'Greatly increased longevity' of the population means that the Government's current plans to increase the age at which workers can draw their state pension to 68 by 2046 do not go far enough, the Institute of Directors (IOD) said.
Under the group's proposals, most means tested pensions would be scrapped, while those prepared to put off taking their pension allowance would benefit from larger payments.
However, the TUC has hit out at the IOC, claiming that at a time when employers are fighting hard to keep a retirement age of 65, it would condemn many older people to limbo where they are too old to work and too young for a state pension.
"The better off you are, the longer you live and the more years you get to claim a state pension," the TUC's general secretary, Brendan Barber, said.
"A big rise in the state pension age would mean the less well-off lose a much bigger proportion of their pension than longer-living affluent pensioners, who are much less dependent on the state pension in any case.
"Taking from the poor and giving to the rich is no way to reform the pensions system. The IOD report fails to address the platinum plated pensions enjoyed by FTSE 100 directors, which paynout nearly £250,000 a year and are commonly available at 60."
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 Any products featured may be withdrawn by their provider or changed at any time.
Moneyfacts.co.uk will, like most other websites, place cookies onto your computer’s
hard drive. This includes tracking cookies.