Government pensions decision may impact on employee benefits

The importance of employee benefits such as a good pension scheme may be increased as people could be working longer.

Among a series of measures announced in the emergency Budget this week, the government has revealed plans to raise the age at which people collect their state pension to 66.

This move may be implemented by 2016, according to work and pensions secretary Iain Duncan Smith.

In the following years, the retirement age may be raised to 70, he added.

"People are living longer and healthier lives than ever, and the last thing we want is to lose their talent and enthusiasm from the workplace due to an arbitrary age limit," Mr Duncan Smith stated.

Deputy prime minister Nick Clegg said in an interview with the BBC that the default age for retirement had been lifted and public sector pay would rise at least in line with the rate of inflation.

Prime minister David Cameron said this week that public sector workers can expect less generous pensions in the coming years, as the cost to the Treasury was too great.
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