THE TELEGRAPH: Millions of employees who are not saving for their retirement will be enrolled in company schemes under a radical shake-up of pensions which eventually could see most people working into their seventies.
In a landmark announcement intended to herald a new era of shorter but wealthier retirements, the Government will encourage people to work for longer by making it illegal for companies to force staff to give up work at 65.
At the same time, the age at which employees can claim the state pension will rise to 66 as soon as 2016 for men — 10 years earlier than the last government had decreed.
The Coalition is to consult on the most appropriate pace at which to increase the retirement age even higher in line with rising life expectancy.
The outcome is likely to be that, by the second half of the century, most people will work into their seventies.
In return, workers would receive more generous state pensions boosted by membership of company schemes, into which employees will be enrolled unless they opt out. Those reliant on state pensions will benefit from the restored link between pensions and earnings announced in this week’s Budget. Pensions shake-up could see most people working into their seventies >>> Andrew Porter and Rosa Prince | Wednesday, June 23, 2010
