Terming pension reform as ‘essential’, Chancellor George Osborne said public sector pensions and state pension age reforms must be completed sooner than later.
The Chancellor was speaking on the occasion of launching the UK economy report by IMF this morning. The IMF report supports the reforms initiative taken by the UK government. After going through the report, he’s convinced about the necessity of pensions reforms in the country, said Mr. Osborne.
The IMF report says increasing state pension age and reforms measures like higher pension contributions and switching to an average salary scheme, as proposed by the Hutton Commission will stimulate short term growth and check long-term fiscal imbalances.
“I take from the report that we need to press on with medium and long-term reforms to improve the sustainability of our public finances. The IMF today explicitly referenced the reforms we have proposed to the state pension age and John Hutton’s proposals on public sector pensions. It is essential we now see these through”, said Mr. Osborne.
If the present reforms plans are implemented, women’s state pension age will be made equal to the men’s pension age of 65 years by 2018. The current reforms proposal also advocates raising the state pension age further to 66 years for both the sexes by 2020.