The government have announced they are to scrap the default retirement age and increase the state pension age to 66 as a first phase in transforming Britain’s outdated and inadequate pensions system.
Secretary of State for Work and Pensions Iain Duncan Smith stated “The British people are living longer and healthier lives than ever, and the last thing we want is to lose their talent and enthusiasm from the workplace due to a set age limit.”
With an ever-increasing life expectancy we need to recognise that we will have to work longer to ensure a stable and affordable pensions system.
Following the work of the last government, the new coalition are set to continue working on an auto enrolment workplace pension scheme with a team of 3 experts reviewing the plans providing an updated report in the Autumn. The independent review will explore how to make auto-enrolment in the workplace pensions work in 2012.
As a nation we all need to recognise and take responsibility for ensuring the income we require at retirement. The new government claims to want to support us as individuals in doing so, giving us the chance to save through our workplace pension and the option to work beyond the soon to be scrapped default retirement age.
