Pension Ages to Rise at Faster Pace
In news that is surely not going to sound good to many in the United Kingdom, it turns out that the Government has just now confirmed its plans to raise the state pension age by quite a bit, for men it will be age 66 by the year 2016. According to what officials have told the press, they will also be looking into the possibility of pushing the limit higher, to age 70 and even further over the next few decades. The default retirement age appears as if it might also be totally done away with according to new reports that are sure to jostle the minds of UK citizens who had been hoping for a break in their work a day lives.
For the coalition team that is in charge of the pension policy, this is the first major word the press has heard from them. For those unfamiliar, the team behind this news would consist of Pensions Minister Steve Webb and Iain Duncan Smith, the current Secretary of State. They have made no secret that they are looking to raise the pension age for men to 66 within the next 6 years and apparently are not concerned about the way that citizens who are already struggling with massive debt loads and longer working hours to afford goods that continue to rise in cost while wondering how long their jobs will hold, will feel about this news. Those who have not yet entered into IVA programs to get rid of their debt have been advised to do so as quickly as possible since it is becoming quite apparent, say experts, that the Government has no plans to make life easier for citizens and saving up to be able to one day enjoy some free years will be far tougher to do while slowly paying off debts.
Women, also will be facing a higher pension age a few years after the age for men has been raised. The Government had already made public notice of its intent to raise the pension age to 66 by 2024, but this is 8 years later than the current proposition. By the year 2046, the Government has intended to raise the pension age to 68. The new ministers now in charge would like to see it raised to 70 as quickly as possible. Since, they claim, people are living longer then they need to be able to work longer, as well, and thus they are pushing their program to “reinvigorate retirement”.
On the other side of the fence are those who advocate these decisions because they allow workers to be able to work longer if they would like to. Those who advocate the new changes say they do not like to see companies be able to fire employees simply because they have reached the age of 65, especially when those folks wish they could work longer and enjoy the work that they do. Duncan Smith also noted that it would be a negative thing for the UK to lose the value that older workers bring to the market in terms of their experience and since they are living longer and more healthy lives they should be allowed to work longer if they wish. However, this comment was closely backed by another that suggested the true reason for the changes would be an effort to make sure the pension system does not fail as people continue to live longer and need more financial resources over the course of those ‘extra years’.
The look will go deeply into the ties between the state pension age threshold and the life expectancy of the person in question. Since today’s life expectancy is age 77 for men and 81 for women, it could be a number of other things that are coming into play that are more political than purely practical. The questions in the Budget regarding any rises in pension pay outs are also to be noted as Britain seems to get somewhat reluctant to pay its retired work force and this has caused concern for some who feel the Government are playing games to try and balance a budget that is full of misspending in other areas by taking that money from those who actually deserve it.
