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Auto-enrolmentLatest NewsPay & benefitsPensions

Lib dems seek raised retirement age

by dan thomas 22 Nov 2005
by dan thomas 22 Nov 2005


The Liberal Democrats have proposed raising the retirement age to 67 and auto-enrolment to occupational pensions.

The state pension age should rise to 67 – but only in 25 years time – to help boost its value from £82 to £109 per week, the party said today.

The “citizen’s pension” would be paid to those who had lived in the UK for at least 20 years, rather than being based on national insurance contributions.

Liberal Democrats leader Charles Kennedy said the plan would particularly help women, who often lose out under the current system if they take time out of work to raise children.

The party does not want to force workers to join company pension schemes, but would change the rules so that people had to opt out of their firm’s scheme rather than opt in as at present.

The recommendations largely echo the expected suggestions of the Pensions Commission, which was set up by the government to suggest ways of reducing the UK‘s £57bn pensions deficit.

The commission, headed by former CBI chief Adair Turner, will publish its report next Wednesday.

 

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