State pension age could be pushed back yet again: Experts say young people could work until they are 74
The state pension age could be pushed back yet again and young people may have to work until they are 74, experts are warning.
It may rise by nearly ten years by the 2060s, hitting workers currently in their 20s and future generations, the Office for Budget Responsibility forecasts.
Workers in their late 40s and early 50s could also face delayed retirement, the Treasury’s independent watchdog reports.
That is because several extra rises could be imposed in the 2030s, as a result of the ageing population.
It predicts the state pension age may rise to 68 for both men and women as early as 2031 and then to 69 in 2034 and 70 in 2037.
By 2063 the state pension age could be as high as 74, the OBR says.
That would mean anyone born after 1989 would have to wait until they are 74 before they can receive the state pension.
The OBR notes the life expectancy of a 74-year-old in the mid-2060s could be 100 and there are likely to be one million aged 100 or over by then.
The state pension age is due to rise to 66 for both men and women by 2020, to 67 in 2028 and to 68 by 2046.
But the prospect of depriving workers of the state pension until well into their 70s was branded ‘unreasonable’ and unfair yesterday.
Former pensions minister and campaigner Baroness Altmann said: ‘The current process is unreasonable and needs to change.
Just because average life expectancy is rising, that does not mean it is fair to keep pushing the pension age up. Some people have much shorter life expectancy than others.
‘I would like to see people being allowed to get their state pension sooner under certain circumstances.
‘For example, if they’ve had really long working lives or if they’re not well. They should be allowed to start their pension earlier. Just increasing the age is a very blunt instrument for managing pension costs and tends to disadvantage the lower paid and people living in parts of the country with lower life expectancy.’
Another former pensions minister, Sir Steve Webb, said: ‘Our society could be transformed in ways for which we are totally unprepared.
‘A world where we cannot get a pension until we are 74 and a million people have celebrated their 100th birthday would need a total rethink of our approach to work, savings, health and care.’
A spokesman for the Department for Work and Pensions said: ‘No decision has been made on future changes to the state pension age timetable.
‘We are committed to reviewing it in each parliament to ensure that it remains affordable, fair and sustainable for generations to come.’
A review will be published in May. No one is obliged to work until the state pension age but pension payments do not start until the threshold is reached.
Read the original story at the Daily Mail