Research indicates UK pension age must increase

A stack of silver coins with a gold clock in the background

According to new research, retirement age for middle-aged employed Britons may need to rise to 71.

The findings arrive as part of the study that examined the effect of falling UK birth rates and increasingly longer life expectancy on the government state pension.

Britain’s current state pension age is 66, but is set to increase to 67 between 2026 and 2028, and then to 68 by 2044. However, the recent research report says that this is not high enough, and that any Britons born after the date of April 1970 might need to work until they reach 71 before they can claim their state pension.

Pension experts warned that even this age limit could need to be extended, because of the high rate of employees exiting Britain’s workforce before reaching state pension age, with preventable ill health given as the predominant reason for retirement.

Statistics from the Office for Budget Responsibility (OBR), UK pensioner benefits cost the government £136 billion between 2023 and 2024. Out of this, £124 billion is comprised of state pensions. Independent think tank, The Intergenerational Foundation, agreed that the UK pension age needed to rise, but has questioned who should bear the cost.

UK workers with concerns about needing to cease work earlier often seek out specialists in retirement planning in Shropshire, Hampshire and other counties for advice. Wealth managers regularly assess their client’s retirement plans and ensure they are amended in line with their changing financial circumstances to prepare them with adequate provisions when they exit employment.

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