Thursday, 23 November 2006

Three more years in the salt mine?

John Hutton the Work and Pensions Secretary, is to warn that the retirement age has to be raised to avoid shifting the tax burden onto future generations.
Mr Hutton will announce in his speech, that the age of retirement is to be raised to 68 over the next 40 years to avoid a 4p rise in income tax.
The new measures aimed at covering the cost of future state pensions will be included in a bill of reforms published next week.
The basic state pension is to be re-linked to earnings within the next parliament and number of years it takes to build a full basic state pension is to be cut, from 44 years for men and 39 years for women to 30 years for everyone.
Mr Hutton is to say: "As unpopular as it may be to talk about working longer - the simple fact is that if we aren't prepared to increase the state pension age, we will simply pass an ever greater and frankly unsustainable burden on to our children and grandchildren."
He adds that those who oppose the bill: "are in effect arguing for more than a 4p rise in the basic rate of income tax to pay for a population spending more and more of their lives in retirement."

Q. Would you prefer to work up to the age of 68 rather than having to pay more tax to cover your state pension?

To view the results go to:

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