Below is the text of Mr Major’s written Parliamentary Answer on Retirement on 28th October 1986.
Mr. Meacher Asked the Secretary of State for Social Services what is the estimated cost in a full year of implementing a retirement age of 60 years for men (a) gross of benefit savings and (b) net of benefit savings.
Mr. Major Reliable estimates of the costs of reducing men’s pension age are extremely difficult because they are highly sensitive to what assumptions are made about how change would affect retirement behaviour and labour market behaviour. At present, our best estimate is that a reduction in men’s pension age to 60 would involve a gross cost approaching £5,000 million in a full year. The estimated net cost is about £3,000 million.