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Anorak | Why Raising The Pensions Age Makes Such Damn Good Sense

Why Raising The Pensions Age Makes Such Damn Good Sense

by | 6th, December 2013

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GEORGE Osborne’s announced that he’s going to raise the state pension age and this makes damn good sense. No, not just because we’re all pig-faced Tories who love shafting the poor .

In potentially one of the most far-reaching reforms since the introduction of the state pension in 1908, Osborne will say the pension age for men and women will rise to 70 by the 2060s under a new formula linked to average life expectancy. This means that people born in the 1990s, who are now entering the workforce, will have to work until at least the Biblical life expectancy of three score and ten.

Unfortunately the Guardian’s got it slightly wrong there. It’s the state pension age that will rise, not the private pension age. You can retire at any age you like on your own money: what’s changing is your ability to retire on the taxpayers’ money.

There’s two reasons why this is a damn good idea. The first is simply the cost of pensions. We’re all living longer, life spans are increasing, and yes, we do indeed want the old to be living in comfort. But with more people getting old, more people living more years in retirement, we’ve a financial problem here. There is no investment fund that people have paid into to collect their pensions from. Past national insurance payments have been spaffed on whatever the governments of the  day decided to spend the cash on. Which means that we can do one of two things with pensions. Well, one of three, the first being tax everyone more now to give the money to the pensioners. Hands up everyone who likes that idea?

The other two are, either we can make the pension some pitifully small amount and pay if for many years, or we can

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Posted: 6th, December 2013 | In: Money, Politicians Comment | Follow the Comments on our RSS feed: RSS 2.0 | TrackBack | Permalink