Friday, October 14, 2011

UK: Pension age of 67... sooner than you thought

The state pension age is to rise to 67 for both men and women many years earlier than planned – possibly as soon as 2025. This means millions of people currently in their 50s will have to work a year longer than they expected. Whitehall sources said an announcement could come as early as next week.

Under the timetable set by Labour, the pension age was to reach 67 between 2034 and 2036. But Coalition ministers say the ageing population and spiralling pension costs mean this is no longer tenable. Experts predicted that a higher state pension age of 67 would come into force as soon as the ‘mid-2020s’, though other sources suggested the date would be closer to 2030.

Looking further ahead, the state pension age is likely to rise to 68 – and possibly even to 70 – as ministers consider linking it to rising life expectancy. As a result, women whose own mothers retired at 60 could be working up to a decade longer before finally being able to claim their pension.

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