Millennial Retirement Age Now At 71 Years Old
According to the UK’s Actuary Department, millennials starting their careers at 20 years old will need to work until they are 71 years old. Meanwhile, 30 year old workers will need to work until they are 69 to retire with enough to cover basic necessities.
The Actuary Department said the National Insurance rates may increase and add an annual £1000 to annual tax bills for existing workers in the United Kingdom. Ministers also mentioned that the pension age is likely to reach 68 by 2030 drawing its conclusion from the Actuary Department’s information.
Millennials will have rougher employment constraints compared to their predecessors because they will work longer to fund the latter’s pensions and their own.
According to former Pensions Minister Baroness Altman, the decision was “difficult” but it was needed to “deal with the future increases in state pension costs” for the coming years.
The Actuary Department also said that between 2057 and 2059, the pension age will reach 70, affecting individuals who are aged 29 years old and younger.
The only bright side the UK Treasury saw is that the pension fund will have a surplus once the new pension ages are executed. With NI payments going up by 17 percent, future pensioners will have better options and improved amounts.