THE TUC last week warned that proposals to raise the pension age to 70 would leave older people facing a workless limbo. Responding to the Institute of Directors’ (IOD) report on retirement published on Monday, which calls for the state pension age to be raised to 70, TUC general secretary Brendan Barber said:
“The better off you are, the longer you live and the more years you get to claim a state pension. A big rise in the state pension age would mean the less well-off lose a much bigger proportion of their pension than longer-living affluent pensioners, who are much less dependent on the state pension in any case.
“With employers fighting hard to keep a retirement age of 65, such a proposal would condemn many older people to a limbo where they are too old to work and too young for a state pension. Taking from the poor to give to the rich is no way to reform the pensions system. The IOD report fails to address the platinum-plated pensions enjoyed by FTSE 100 directors, which pay out nearly £250,000 a year and are commonly available at 60.”