LONDON: The state pension age in Britain is forecast to rise to 69 in the late 2040s compared to the current level of 65, Finance Minister George Osborne said yesterday.
“This is one of those difficult decisions governments have to make if they’re serious about controlling the public finances,” Osborne told parliament in his autumn statement, an update on his budget earlier this year.
The Conservative-Liberal Democrat coalition government will seek to bring forward plans to extend the retirement age to 68 before they are entitled to a state pension, according to a government source. The state pension age was due to rise to from 65 to 68 by 2046. However, Osborne will reportedly propose to bring the change forward to the 2030s, and will aim to lift the age to 69 in the 2040s. That means Britons might have to work until the age of 70.
Under the new rules, people would spend no more than a third of their expected lifespan drawing a state pension. “This is part of the government’s long-term plan to secure a responsible recovery,” the source added.
Osborne vowed to pursue his deficit-slashing policy to secure the recovery. The economy will grow 1.4 percent in 2013 and 2.4 percent in 2014, Osborne said in his so-called autumn statement. “I can report that Britain is currently growing faster than any other major advanced economy. Faster than France, which is contracting. Faster than Germany, faster even than America.”
The minister announced a new cap from next year on welfare spending, and outlined plans for another £3bn ($4.9bn) in savings in the public sector. He also unveiled new measures to tackle tax avoidance, tax evasion, fraud and error, in a crackdown to raise more than £9bn over the next five years. Osborne added that increases in business rates would be capped at 2 percent with effect from April 2014, while fuel duty would be frozen again next year. AFP
