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

John Cridland
(Image credit: Peter Macdiarmid/Getty Images)

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.

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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".

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