The Courier & Advertiser (Fife Edition)
Government ‘picking the pockets’ of millions
Opponents blast decision to raise state payout age for both sexes from 67 to 68
The government has been accused of “picking the pockets” of millions of people in their forties after announcing that anyone born between 1970 and 1978 will have to wait for an extra year before receiving their state pension.
The state pension age for men and women will rise from 67 to 68 between 2037 and 2039, seven years earlier than previously planned, in a move designed to save £74 billion by 2045-46, Work and Pensions Secretary David Gauke told the House of Commons.
Mr Gauke said increases in life expectancy meant those affected could still expect to receive more over their lifetimes than earlier generations.
But charity Age UK pointed out his announcement comes just days after former government adviser Sir Michael Marmot warned the trend towards longer lives was “pretty close to having ground to a halt” since 2010, after rising constantly since the Second World War.
Labour said the change – in line with the recommendations of this year’s Cridland Report – would mean 34 million people working longer than they would under its plan to hold the retirement age at 66.
Under current plans, the state pension age for men and women will be equalised at 65 at the end of 2018, before rising to 66 in 2020 and 67 in 2028.
The new change affects anyone born between April 6 1970 and April 5 1978.
Mr Gauke told the Commons: “There is a balance to be struck between funding of the state pension in years to come whilst also ensuring fairness for future generations of taxpayers.”
Age UK charity director Caroline Abrahams said: “The Government is picking the pockets of everyone in their late forties and younger.”