July 25, 2005

IPPR suggests 67 as minimum retirement age

by brian_turner

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A new Institute of Public Policy Research (IPPR) report suggests that Britons should work until they are 67 before receiving a state pension, with the higher age being introduced between 2020 and 2030.

Peter Robinson, the report’s author, said: “Raising the state pension age is vital if the UK pensions system is to remain sustainable and cope with the pressure of an ageing population.” In October 2004, the commission estimated that over 12 million people in the UK were not saving enough for their retirement.

Mr Robinson noted an unwillingness among members of the public to accept that life expectancy is rising. He said that most people wanted to retire at or before the age of 65.

The IPPR believes it will be difficult to increase the pension age without a clear political consensus. Mr Robinson said that this could be achieved by linking an increase in pension age with an increase in the value of the basic state pension.

Stephen Timms, the Minister for pension reform, said that the government had no plans to increase the state pension age but would welcome more choice for people planning for their retirement.

The Trade Unions Congress expressed concern that poor people would be the most severely affected by planned reforms.

Nigel Waterson, the Conservative pensions spokesman, called for more flexibility to allow those who want to work for longer to do so. He said the government should provide incentives to encourage people to work for longer.

The Pensions Commission is expected to publish its final report in the autumn.

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