Pension age could be 66 by 2016
20th July 2010
People approaching their retirement may find the state pension age pushed back sooner than expected by the coalition Government, highlighting the importance of income protection cover.
Forward financial planning and life insurance policies could be more vital if ministers bring forward the pension age increase to 66 by as soon as 2016, as suggested by the Conservatives before the election.
Work and Pensions Secretary Iain Duncan Smith said tackling the national deficit could mean accelerating plans set out by the former Labour government to push state pensions back to 66 by 2024 and 68 by 2046.
He told the Daily Mail: "We have to make the argument for it sooner. The truth is deferment of one year will add 1% to GDP and it will add up to 10% on your pension pot.
"The current plan to raise it to 68 ... we think could be accelerated. It seems silly to wait."
The coalition Government is currently reviewing the Tories' pre-election proposal, amid speculation it could bring the pension timetable forward by 10 years, changing the state retirement age to 68 by 2036.
Copyright © Press Association 2010
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