Equality yes, pension cuts no!

Submitted by Matthew on 19 January, 2011 - 10:50

The government is abolishing the default retirement age (DRA), currently 65.

They say this will end age discrimination in employment, where people can be forced to retire when they would prefer to and could go on working. On that score, this is a progressive measure. However, at the same time the government has announced other changes to retirement regulations and pensions that are regressive.

The Pensions Bill proposes raising the state pension age to 66 by 2020; this is six years earlier than Labour planned. And the equalisation of pension age between women and men (forcing women to work longer before they qualify for a state pension than previously) will happen two years earlier than Labour planned, in 2018.

From 2012, all employees of more than three months service will be enrolled in a work pension scheme to which they and employers must contribute at least three per cent of salary. Behind this measure is the threat that the state pension will continue to wither.

“People are living longer” is the mantra behind all these changes. While in general it is true, behind that happy fact lies shocking inequality. A National Audit Office report in 2010 showed the poorest people in England died 10 years younger than the richest. By area, the average for Blackpool was 73.6 years (men)/78.8 years (women) compared with 84.3 years (men)/89.9 years (women) in Kensington and Chelsea.

Raising the retirement age means many more people will never have the opportunity to retire; and many will be doing arduous or stressful jobs.

End age discrimination, yes, but, people should also be able to retire on a decent pension when they need to, whatever age that is.

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