8 thoughts on “Pension age should be raised more rapidly”

  1. Posted 01/07/2010 at 12:43 | Permalink

    Ideally, there should be no such thing as a statutory retirement age at all. In a fully capitalised system, a rising life expectancy would lead to rising annuity prices, so people would either have to work longer than originally planned, accept a lower old-age living standard than originally envisaged, or choose some combination of both.
    It would save us the political tug-of-war, because nobody would ‘decide’ that people should work longer. A longer working life would come about as the result of price signals, not political decisions. Going on strike against it would be like going on strike against bad weather.

  2. Posted 01/07/2010 at 13:16 | Permalink

    I often feel like going on strike against the weather, actually.

    No, Anthony is right. In an earlier blog and in other places I have argued for the process of change to begin immediately, with the SPA being raised by three months every year, which is only slightly more than the current annual increase in life expectancy.

  3. Posted 01/07/2010 at 13:24 | Permalink

    Here is the link to Len Shackleton’s blog post on this issue:

    http://blog.iea.org.uk/?p=788

  4. Posted 01/07/2010 at 16:38 | Permalink

    But there is no need to have a state retirement pension and therefore a state retirement age.

  5. Posted 02/07/2010 at 08:16 | Permalink

    In another issue. The required years to receive the state pension fell to 25 from 40 should this be raised?

    Any opinions.

  6. Posted 02/07/2010 at 09:34 | Permalink

    I think it fell from 44 (men) and 39 (women) to 30 years for both only very recently, though I don’t quite remember the details of when this happened or what the extra cost was estimated at – a quick google search reveals very little. Philip’s an expert….

  7. Posted 02/07/2010 at 10:04 | Permalink

    @morgan – I would be surprised if reducing the ‘required years’ has made a huge difference. Those not entitled to state pensions would often have been entitled to other benefits such as income support instead. New Labour also introduced an minimum income guarantee for over-60s, whether or not they were state pensioners.

  8. Posted 02/07/2010 at 14:15 | Permalink

    You’re probably right Richard, but this is yet another flaw in the fantasy that employee NICs are a contribution to some fund from which you draw based on what you put in.
    An honest government would scrap them, as they are just another form of income tax. There would be some bureaucratic savings I suppose.

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