State Pension Age May Just Hit 70 By 2050
Increasing life expectancy may pressure government to reformulate future rises for pension to allow coming generations a third of their adult life in retirement.
According to research information published by the Office of National Statistics (ONS), in the past century, life expectancy at birth had increased by nearly three years per decade. This is up 51 years in 1910-1912 to 79 years.
Around 20 per cent of men aged 60 and 31 per cent of women can expect themselves to survive around their 90th birthday.
According to Senior Consultant at Pensions Consultancy Barnett Waddingham:
” Although no one has a crystal ball and can’t be sure for certain what the future may hold for us all, the ONS figures do raise the possibility of many more people in this country living well into their nineties by the second half of this century.
“Using the formula now proposed by the Government that future generations should spend up to a third of their adult life in retirement it is very likely that state pension ages will have to rise much faster than currently anticipated, almost inevitably reaching at least 70 by the midpoint of the century.
“Longer working lives will surely become the norm for today’s younger generations, something they will have to accept in thinking ahead for retirement and how they are going to finance them.”
According to McClean, a full-scale review of state pension was important if the government intnds to increase the pension age indefinitely. He said it is possible there is a minimum pension age of 66 but with early access that could result to lower payments. Pensions Research at Financial Services Firm Hargreaves-Lansdown, the figures warn of the need to accrue enough savings to cover longer retirements.