Pensions overhaul will be complete by 2010

A radical overhaul of UK pensions that will introduce incentives for UK citizens to work longer will be complete by 2010, according to pensions minister Stephen Timms.

Timms said that the government would publish a consultation document about its proposed reforms next spring, just months after the Pensions Commission hands down its recommendations about how to avert a crisis in UK pensions.

The government will then set out initial legislation before the end of next year, he told The Times.

“It is setting quite an ambitious pace, but this is not an area where it makes sense to hang around. 2010 is when the state pension age starts to rise for women and I hope the changes we introduce will be in place by then,” Timms said.

Timms also sent the clearest message yet from the government that its reforms will mean that UK employees have to work longer.

“I think there is a wide understanding that change is needed and that working longer is clearly going to be part of the solution,” he said.

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