Conservative plans to raise the state retirement age, up to ten years earlier than planned, will be outlined by shadow chancellor George Osborne later.

If the Tories win power they will set up a review to look at raising the pension age for men to 66 from 2016 at the earliest, to help tackle UK debts.

They have not discounted a rise in pension age for women towards 66 but have ruled out doing so by 2016.

Ministers plan to raise the pension age to 66 between 2024 and 2026.

‘Complexities’

Bringing the move forward would mean many more people than previously expected, particularly those aged between 49 and 59, having to work a year longer before qualifying for a state pension.

Conservative Party sources say the change would save £13bn a year from the budget deficit, about 0.75% of GDP each year.

Ministers intend to equalise the state pension age for women, so that it rises from 60 to 65 from 2010 to 2020.

Amid concerns women in their late 50s could have to work an extra three years if state pension ages are equalised at 66 in 2016, Tory leader David Cameron said that was “completely out of the question”.

He told the BBC that there were “complexities” in the plan and a new Conservative government would set up an independent review to look at how this could be taken forward.

The BBC’s political editor Nick Robinson said any suggestions that women in their late 50s would be left considerably worse off by the proposals would be politically dangerous and would be seized upon by opponents.

The rise in the pension age is designed to help pay for restoring the link between pensions and earnings which both Labour and the Conservatives are committed to introducing before the end of the next Parliament.

Mr Cameron said his plans were underpinned by “a genuine desire” to ensure pensioners were not “left behind” and were able to retire with “security and dignity”.

“The big step we are taking is to say that that the previous agreement that 2026 was the right year was not ambitious enough,” he told the Today programme, saying the debt crisis and rising life expectancy meant more urgent action was needed.

“We need to go further.”

Mr Osborne will announce the details of the pension plan in a speech to his party in Manchester later.

Under the government’s existing plans, the state pension age will rise gradually from 65 to 68 between 2024 to 2046.

‘Painful choices’

Senior Tory sources said the change was designed to lock in a sustainable and long-term saving into the public finances.

They acknowledged that the decision could prove unpopular with some but they said they were being deliberately upfront about a tough decision that would make credible savings in the long term.

Mr Cameron said some “painful choices” had to made to get to grips with the country’s debt crisis but that he was prepared to “take people through” these tough decisions now.

Mr Osborne is under pressure to demonstrate that he has a fully-worked out plan to deal with Britain’s record debts – and pay for some of the measures announced this week to deal with unemployment.

But his big speech looks in danger of being overshadowed by Chancellor Alistair Darling’s announcement of a pay freeze for 750,000 senior and middle-ranking civil servants, sparking Tory anger.

Mr Cameron criticised the announcement as being “slightly cynical in timing” and “quite insubstantial in content”.

“What you are going to see from George Osborne is quite a contrast, instead of not saying something to his party conference, which is what Labour have done, you will see George explaining to our party conference, what needs to be done.”

But Labour sources insisted they were not trying to scupper Mr Osborne’s speech, saying public sector pay was simply the first issue in Mr Darling’s in-tray after he returned from the Labour conference and a series of foreign engagements.

BBC Online