24 January 2023, 08:36
The government is being warned against raising the retirement age to 68, a plan that would make millions of Brits work for longer.
Plans to increase the retirement age to 68 by 2035 could be announced in the Spring budget, though it is understood the government has not made a final decision on the plans.
Prime Minister Rishi Sunak and Chancellor Jeremy Hunt have been warned by backbench MPs that they would be “playing with fire” by approving the plans before the next general election, the Sun reports.
Raising the retirement age to 68 would add millions into the UK economy, according to Treasury analysis.
The current retirement age is 66, but this is set to increase to 67 in 2028.
It was due to rise to 68 in 2046, but plans would bring that change forward by 11 years.
Those aged 54 and under would be affected.
Chancellor Hunt and the Work and Pensions Secretary Mel Stride are reportedly at odds with each other over the increase, with the latter suggesting that 2042 would be the appropriate year to make the change.
Several prime ministers are said to have discussed the policy change in recent years, including Liz Truss, but the move could cause controversy within the Conservative party, who hold a large share of older voters.
In the mid-2010s, the Tory party faced a backlash when the retirement age for men and women was equalised.
However, it is unlikely any change would come into effect prior to 2033, with a 10-year gap between laws being passed and taking effect.
Introducing the change to the retirement age during the March budget would represent another drastic measure by Mr Hunt, who in his November budget introduced a series of financial policies.
It was announced the threshold for the 45p additional rate of tax will be cut from £150,000 to £125,140, while a new temporary 45% levy on electricity producers was introduced.