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December 01, 2006


Tom H

"Increasing the retirement age therefore merely means people will claim incapacity benefit for longer."

Well, it won't mean that, because incapacity benefit is in the process of being abolished.

That's not entirely a pedantic point about names of benefits - the new system will include more emphasis on getting people who are out of work for reasons of ill-health or disability back into employment, with the intention (realistic or otherwise) that fewer people will be on benefits than at present. Obviously, the question of whether the number of people taken off the benefit rolls by welfare reform will be matched or exceeded by the number of older people coming into the benefit system through ill health is a difficult one to calculate. And, equally obviously, there are a whole range of factors affecting the employability of older people which have very little to do with the benefits system, or the pensions system.

james higham

But it wouldn't affect Mr. Average, right?


Did you know that private pensions don't have this problem.

Your annuity income is increased when you have lower life expectancy/ higer mortality.

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