U.K. bill to raise state pension age

Legislation would also help women who take time off work for children earn a full state pension

New legislation, announced by the Queen, would raise the United Kingdom's state pension age from 65 to 68.

In addition, it should take fewer years of National Insurance Contributions to earn a full state pension, a move aimed at helping women who often take time out of their careers to bring up children.

The government hopes that the pension bill will:

•gradually increase the state pension age for men and women from 65 to 68 by 2046;

•establish a system of Personal Accounts, which would see employers, employees and the government all contributing to boost savings levels; and

•restore the state pension earnings link — this would see state pension rise in line with average earnings rather than inflation.

The government said that it wanted an "enduring pension settlement built on a consensus" and a "state system more generous and more widely available to provide a solid foundation on which to save for retirement."

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