Government consults on later retirement

Chancellor Osborne announced in the Budget that there will be an urgent review of the State Pension Age with the intention of raising it to 66.

The chancellor said that “the review will be conducted quickly in recognition of the urgent need to press ahead with implementing these changes fairly”, and will also “consider future increases to the State Pension Age and how best to manage the ongoing challenges posed by increasing longevity”.

The age for men won't be raised to 66 until 2016, while for women it will be raised to that level a few years later.

The government also revealed in the Budget that it will begin consulting on removing the Default Retirement Age of 65 from April next year.

The unions have in the past voiced conditional support for the abolition. Last year, TUC general secretary Brendan Barber said: “It cannot be right that an employer can sack someone simply for being too old. Employees should have choice — neither forced by employers to give up work, nor forced by inadequate pensions into working longer than they should.

“A key challenge as we live and stay active longer is developing the right kind of jobs, support and training for older workers.”

www.hm-treasury.gov.uk/d/junebudget_complete.pdf

www.tuc.org.uk/pensions/tuc-16742-f0.cfm