Retirement Age

Lord Flight Excerpts

Monday 5th September 2011 Lords Chamber

[Lord Freud]

My Lords, as the noble Baroness pointed out, we debated this in some depth when we looked at the Bill. Those concerns, expressed around the House, were taken very seriously. The Secretary of State responded at Second Reading in another place by saying that we needed,

“to implement the change fairly and manage the transition smoothly”.—[Official Report, Commons, 20/6/11; col. 50.]

We are looking at how best to do that. Should there be legislative changes, they will of course come to this House to be considered in due course.

[Lord Flight]

My Lords, I urge the Government to accelerate to a retirement age of 70, not just on grounds of longevity and fitness but on fundamental economic grounds. It is entirely natural, if you have an ageing population and wish to keep economic growth up, that the workforce should remain the same through people working longer. Finally, the highest growth in new jobs now is among people over 65, so this is a reality in the workplace.

[Lord Freud]

Yes, my Lords, it will be extremely expensive if we do nothing. In the past five years we have already seen real expenditure on pensions go up by £20 billion to £81 billion a year. If we do nothing, the projections are that age-related spending will go up to more than 5.5 per cent by the middle of the century. We must do something about it. That is why we have this consultation to look at the best way of moving the pension age upwards to reflect the changes in ageing.