Govt. review hints at age hikes for future British pensioners
A UK government review of the state pension system hints at increases in the official retirement age in the years and decades to come.
Cabinet ministers have announced a radical review of the UK pensions over government concerns that the current system may not be “affordable in the long term.”
Working Britons who are now under the age of about 55 might be targeted if the review becomes law.
If it is approved, those workers might still have to work if they turn 75 or even 81, according to the Telegraph. Millions of people will be affected in that case.
The government says the review would consider changes in life expectancy as well as wider changes in society and “make sure that the state pension is sustainable and affordable for future generations.”
The results of the government review will be published next May.
The current state pension age is 65 for men and 60 for women, and is due to rise for both to 66 by 2020, the report added.
The pension age is due to increase to 67 between 2026 and 2028, and will be linked to life expectancy afterwards.
The Office for Budget Responsibility predicts the pension age will have to rise to 69 by the late 2040s before increasing again to 70 by the early 2060s.
And Royal London, the pensions provider, has just published a research suggesting that today’s workers will need to retire as late as 81 to enjoy the same standard of living enjoyed by their parents.
The findings raise the prospect of some people having to “work until they drop” to sustain their current lifestyles.