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Clause 9 - Retirement income funds

Part of Rights of Savers Bill – in a Public Bill Committee at 3:30 pm on 14th December 2005.

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Photo of John Penrose John Penrose Conservative, Weston-Super-Mare 3:30 pm, 14th December 2005

The amendments are motivated mainly by the recently published Turner report. They seek to allow people to specify the time at which they wish to begin their retirement. At any point after 60, someone should be able to say that they wish to convert their SaRA into a retirement income fund. Importantly, however, that date should not be specified. They may wish to convert at 61, 71 or, indeed, 81, depending on their personal circumstances.

There seems to be unanimity throughout the House about allowing people to choose their own date of retirement and to choose a later date if they want to. If someone chooses to retire at 71, it is in everybody’s interests to allow them to continue working until 71. Under age discrimination laws, companies can fire somebody without any come back when they reach 65. The amendments seek to remove that exemption, so if someone has not opted to retire or had not converted their SaRA to a retirement income fund, they could not be fired by their employer simply on grounds of age.