Cameron’s pension pickle

6 October, 2009

Evan Davies: Right now we just want to be clear on some of the details because as you will know women’s state pension age is not going to be 65 in 2016, it’s going to be 63 in 2016, it gradually rises thereafter. So you’re not I assume planning to take women straight from 63 to 66 in 7 years time?

David Cameron: No that’s not what we’re proposing, what we’re proposing is this independent person to head a review to look at not just is 2016 the right year, that would be the earliest we could rise it, but also how you sync together the women’s state pension age and the man’s state pension age into the future so that’s the reason. This is a big announcement, it’s an announcement for the future, it’s important to get it right, I’d like to build all party support for it if that’s possible and I think this is exactly the sort of issue that this independent review should look at.

ED: I’m sorry, I had understood last night this was a proposal but actually it’s a review that you’re planning?

DC: We’re saying that we believe, the Conservative party believes that we should instead of this happening at 2026 it should happen at the earliest at 2016 but sometime in that decade, earliest 2016, but that’s what we’d, like to see. We’ll be asking an independent review to look at the issues around that and to make proposals but it’s, yes, we believe it needs to happen.

ED: Well, but you briefed, that it was going to save £13 billion a year, I mean how can you put a figure on it if you don’t know what the proposal is yet?

DC: Well what we know is that every, every 18 months of a different age raises £20 billion so one year raises £13 billion so it is £13 billion from the year in which you do it, it’s an important saving…

ED: But that would include women at 66 would it or, would that be from 64?

DC: That figure I believe actually applies to just raising the state pension age for men from 65 to 66 but as I say…

ED: So it would be more if you included woman rising from 63 to 64?

DC: One of the reasons for looking at this issue through a review is there are complexities but I think the big step to take is the step we’re taking today which is to say the previous agreement we all had that 2026 was the right year, it is not ambitious enough, we need to go further.

Via Tom Watson

If the General Election reproduces the opinion polls and that is a big if we are going to be landed with a Tory government but the last few days have shown what an almighty cow pat strewn quagmire it may turn out to be.

  • Raising the pension age but how does that effect womens retirement age? Chaps …. chaps, chaps come back
  • Shrinking the state pension entitlement wont make much of a difference to those with a healthy private pension  pot and a long life expectancy but poor manual workers reliant on the state pension who’ve flogged their guts out before they drop dead in their late sixties/early seventies have a lot to be cheesed off about.
  • Saving money by getting people off incapacity benefit and into jobs may well be a worthy aim. Indeed the government has been trying it for years. At its best it helps people have more fulfilling lives and helps the taxpayer but most people on incapacity are on it because they are unable to work and you can only take the  process so far before you’re just chucking ill people from incapacity onto the cheaper jobseekers allowance. But the Daily Mail readers will love it so expect electoral expediency to take precedent over “compassionate conservatism”
Update

Left foot forward has a top post on the 17% Tory pension cut
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2 Responses to “Cameron’s pension pickle”

  1. >Shrinking the state pension entitlement wont make much of a difference to those with a healthy private pension pot and a long life expectancy but poor manual workers reliant on the state pension who’ve flogged their guts out before they drop dead in their late sixties/early seventies have a lot to be cheesed off about.

    I think that’s overegging it. Just how many people have healthy private pension pots?

    Private money purchase pension pots went down by about 30% in 18 months recently, and a longer lifespan just means the pension is smaller, on top of which annuity rates have declined very heavily.

    Private pensions annuities may be worth half of their value three or four years ago.

    Rgds

  2. parburypolitica said

    It’s a fair point you make Matt although it depends far to much on the state of the stock/money market.

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