George Osborne wants to increase the age of retirementShould the Conservatives get into power, the age of retirement is likely to be raised to 66 “no earlier” than by 2016 for men, the shadow chancellor has claimed, which could see retention of staff being increased.

George Osborne told attendees of this week’s ongoing Conservative Party Conference that the age of retirement would go up for UK women by 2020, meaning that females currently under the age of 54 and men under 58 will be affected if the changes are introduced.

He claimed that he was hopeful such amendments would save the country £13 billion, adding: “No one who is a pensioner today, or approaching retirement soon, will be affected. But this is how we can afford increasing the basic state pension for all.”

Mr Osborne added that no increase would be introduced until the second half of the decade.

Commenting on the news, the Guardian stated it is “highly likely” that the default age of retirement will be raised or got rid of in “the very near future”, in news which could prove important to HR departments around the country.

Other announcements at the conference included:

  • Reducing Whitehall jobs in a bid to cut £3bn in administrative costs
  • A cap on piublic sector pensions at £50,000 a year
  • A public sector pay freeze in 2011 for all workers earning more than £18,000
  • Launching a ‘Star Chamber’ cabinet committee to cut red tape and reduce the regulatory burden on business
  • A ‘One in, One out’ rule for new employment laws