“Britons will have to work until age 71 to keep pension system balanced” | the job

The UK’s legal retirement age will need to be raised to 71 by 2030 to keep the UK pension system balanced. This was stated in a report issued by the Longevity Study Center in the United Kingdom (ILCUK).

In countries such as the United Kingdom, the population is aging rapidly. This means that the proportion of people of working age (15 to 64 years) is declining. In order to keep the number of workers per retiree receiving a state pension the same, the retirement age should evolve to 70 to 71 years, compared to 66 years currently, the report said.

In the United Kingdom, the state pays a pension. This maximum is currently £203.85 or €238 per week. Most retirees also receive a second special pension.

The United Kingdom plans to raise the retirement age to 67 years between 2026 and 2028. It is supposed to rise to 68 years in 2044.

Theory versus practice

The study center points out that allowing people to work longer is a theoretical solution, but research shows that in practice “by the age of 70, only 50 percent of adults” are still able to work. The other solution is to increase the employment rate in the workforce from 78 to 85%. “Then it may be possible to keep the legal retirement age below 70 from 2040, at least for a few years,” she added.

ILCUK researchers call on the government to focus on preventing health problems, both in older people and workers. The number of people inactive due to chronic diseases has risen sharply in the UK since the coronavirus pandemic. The earlier a person develops health problems, the greater the pressure on the retirement system. Because then there will be fewer workers to fund pensions.

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Early retirement when is this possible? How much does this mean for your monthly benefit? (+)

Denton Watson

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