The government is planning to increase the age at which retirees can start claiming their state pension to 68 by 2046. The Institute of Directors (IOD) wants to go a step further to a 70 year threshold, an idea strongly opposed by the Trade Union Congress (TUC).
According to IOD plans, most means tested pensions would be made redundant, while those workers willing to hold off on claiming their pension would earn larger payments.
The TUC strongly opposes the proposal on the grounds that it would put many workers into the predicament of being too old to work and too young to retire.
According to the TUC, the wealthier live longer than the poor. Consequently, the less affluent stand to miss out on a much greater portion of their pension than their longer-living counterparts.
The TUC have hit out stating that this is ‘taking from the poor to give to the rich’, a plan that is never going to reform pensions. The IODs report doesn’t even mention the pensions enjoyed by the directors in the FTSE 100 who annually take pleasure in £250,000, which is available at 60.