It has long been thought that as UK population rises and the age expectancy of that population also increases that the state pension will have to be altered in response. It has now been claimed by the Labour Party and supporting economic experts, that working people may have to wait until their 70s before they can start to think about retirement.
The Office for Budget Responsibility has already forecast that on current trajectories of life expectancy, the state pensionable age could hit 70 by the mid-2060s, but Labour and financial experts are now warning that this could occur much earlier than anyone had previously predicted.
The government is currently reviewing the state pension age and mulling a decision to move the state retirement age from April 2028, the point at which it will have reached 67 for men and women, potentially affecting people under the age of about 55.
John Cridland, the director general of the CBI, has been named as the independent reviewer of the pension age and will look at whether the pension age should continue to be linked to rising life expectancy.
For more details on this story check out HRreview’s recent webinar on the problems relating to an aging workforce: http://www.hrreview.co.uk/videos/the-uks-ageing-workforce-debate/59462