The government is introducing a pensions bill to overhaul the state pension and to bring forward the state pension to age 67 between 2026 and 2028 it was announced in the Queen’s Speech today.
Commenting on the news: Joanne Segars, National Association of Pension Funds (NAPF) chief executive, said:
“We are delighted by this confirmation of the government’s commitment to a long-awaited, landmark reform.
“This is another big step towards a simpler, more generous state pension that no longer penalises people for saving. A new system will take millions out of means-tested benefits and will encourage people to take control of their own age by saving towards it.
“The NAPF has been calling for a single-tier state pension for many years. This is the much-needed foundation on which people can build their own savings, knowing that it pays to save. And it will help ensure that auto-enrolment is a success.
“We are all living longer, so it is inevitable that retirement ages move upwards to reflect that. The trade-off for working longer must be a better state pension come retirement.”
Author: Pensions WorldPensions World is the leading monthly magazine for pensions professionals published by LexisNexis.