§ Lord Moynihanasked Her Majesty's Government:
What assessment they have made of the impact of the proposals to prevent professional footballers from drawing their pensions at the age of 35. [HL1192]
§ Lord McIntosh of HaringeyThe Government have received representations from various sporting bodies about the proposal to raise the minimum pension age to 55 by 2010. Having considered these, the Government propose to allow sports-people and others in pension schemes at 5 April 2005 (A Day) to keep any existing right to take benefits before the new minimum pension age. This is subject to those rights being tested against a reduced lifetime allowance and16WA the full pension being vested at the early retirement age.
However, the Government continue to believe that the new minimum pension age of 55 should apply to all pension schemes by 2010. So, sports-people and others not covered by above relaxation, and who believe their career is likely to end before they reach the new minimum pension age, will need to make financial provision in addition to their pension savings to cover the cost of retraining and other needs.
§ Lord Moynihanasked Her Majesty's Government:
What estimate has been made of the savings to Her Majesty's Treasury arising from any decision to remove the ability of professional sportsmen to draw their pensions at the age of 35. [HL1193]
§ Lord McIntosh of HaringeyThe proposal to raise the minimum pension age to 55 by 2010 is part of a package of proposals that will give the vast majority of people the opportunity to save more for their retirement. The Government already spends around £13 billion (net) a year on pension tax relief and the additional cost of the simplification proposals will be around £300 million a year within five years of implementation.