The government has published its Pensions Bill, which outlines sweeping changes to the state pension system.
Central to the Bill are proposals to raise the state pension age to 68 by 2050, and to restore the link between earnings and the basic state pension.
It will also cut the number of years it takes to build a full basic pension for men and women to 30.
The Bill includes most of the main recommendations of Lord Turner’s Pension Commission, which reported last year.
The main proposals are:
Link increases in the basic state pension to earnings during the next Parliament
Raise the state pension age to 66 between 2024-26, to 67 between 2034-36, and to 68 between 2044-46
Reduce the number of years it takes to build a full basic state pension from 44 years for men and 39 years for women, to 30 years for everyone
Create a new delivery authority to “bring on board the expertise needed to design a personal accounts system”.
Pensions secretary John Hutton said: “[Raising the pension age] is a big step, but is absolutely the right way to meet the demographic challenge so that we do not burden our children and grandchildren with the cost of a population spending longer and longer in retirement.”
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