The government has published its Pensions Bill, which outlines sweeping changed to the state pension system.
The Bill includes proposals to increase the state pension age to 68 by the year 2050 and to restore the link between earning and the basis state pension. Furthermore, the Bill reduces the number of years it takes to build a fill pension for men and women to 30 years.
In summary, the main proposals are:
• Link increases in the basic state pension to earnings, during the next Parliament.
• Increase the state pension age to 66 between 2024-2026, to 67 between 2034-2036 and to 68 between 2044-2046.
• Reduce the number of years it takes for both man and women to build a full state pension to 30 years. This is currently 44 years for men and 39 years for women.
• Create a new delivery authority to ‘bring on board the expertise needed to design a personal accounts system’.
