Under-30s could have to work until they're 70
Report calls for state pension age to increase and for government to end 'triple lock' protection
People in their twenties are being warned they could have to wait until they are at least 70 to claim their state pension.
Two influential reports this morning have called for an acceleration in the increases to the minimum age above which Britons are able to retire and for it to reach 70 by the middle of the century.
The changes, if adopted by the government, would mean "nearly six million people aged under-45 face the date they receive their state pension [being] pushed back a year", says Sky News.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
In addition, for anyone aged 30 or under, the pension age could jump from the current 65 to 70 or above.
The minimum pension age is already due to rise to 66 in this parliament, before rising to 67 between 2026 and 2028 and then to 68 between 2044 and 2046.
However, in an official review of the policy, former director of the Confederation of British Industry John Cridland says this is not quick enough to ensure "intergeneration fairness".
His report, which says the state pension remains "affordable", suggests bringing forward the rise to 68 to between 2037 and 2039.
A separate report from the Government Actuary's Department suggested a further rise to 70 by between 2054 and 2056 would be needed to ensure the state pension is paid for no more than 32 per cent of a person's life.
At the moment, the government spends around £100bn a year on the state pension, with pensioner benefits as a whole making up more than 40 per cent of welfare spending, in part because of rises in life expectancy increasing the period of time over which pensions are paid, but also due to above-inflation boosts to the state pension in recent years.
Under the so-called "triple lock", pensions are guaranteed to rise at the highest rate of inflation, average wages or 2.5 per cent, whichever is higher. This measure alone has added £28bn to the cost of pensions over the past six years.
Cridland's report recommends ditching the triple-lock pledge in the next parliament.
He also addresses suggestions the state person age should vary across the country to take account of lower life expectancy in some areas, saying this is "not practical".
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Life in the post-truth era
Opinion The mainstream media can't hold back a tsunami of misinformation
By Theunis Bates Published
-
Magazine printables - November 8, 2024
Puzzles and Quizzes Issue - November 8, 2024
By The Week US Published
-
Magazine solutions - November 8, 2024
Puzzles and Quizzes Issue - November 8, 2024
By The Week US Published
-
Brits keeping 21 million ‘money secrets’ from friends and family, survey reveals
Speed Read Four in ten people admit staying quiet or telling fibs about debts or savings
By Joe Evans Last updated
-
London renters swap cramped flats for space in suburbia
Speed Read New figures show tenants are leaving Britain's cities and looking to upsize
By The Week Staff Published
-
Should the mortgage holiday scheme have been extended?
Speed Read Banks warn that some homeowners may struggle to repay additional debt
By The Week Staff Last updated
-
RBS offers coronavirus mortgage holidays
Speed Read Taxpayer-owned bank follows measures taken in virus-struck Italy
By The Week Staff Last updated
-
What are the changes to National Savings payouts?
Speed Read National Savings & Investments cuts dividends and prizes for bonds
By The Week Staff Published
-
China clears path to new digital currency
Speed Read Unlike other cryptocurrencies, Beijing’s would increase central control of the financial system
By Elliott Goat Last updated
-
Why are donations surging to the RNLI?
Speed Read Charity enjoys flood of funding after criticism for overseas work
By The Week Staff Last updated
-
PPI deadline day: how to claim
Speed Read Final chance for consumers to apply for compensation
By The Week Staff Published