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Pension Age Increase

The state pension age in Britain will increase to 68 years. Originally, Britain planned this increase to occur from 2044. However, the government announced that they will phase in the change between 2037 and 2039.

Effectively, those currently aged between 39 and 47 years of age will have to work longer. They will have a longer working life before they receive a state pension. The change will affect those born between April 6th 1970 and April 5th 1978.

The increase in the pension follows recommendations from a report by former CBI director general. John Cridland published a report in March of this year. He claimed that at current levels, pension payments would become unsustainable for the British economy.

The report recommended the increase in pension age because the life expectancy in Britain continues to rise. The number of people who will reach the age of 100 in Britain is expected to rise from 6,000 today to 56,000 by 2050.


Opposition parties and NGOs have condemned the move. Caroline Abrahams, Charity Director of Age UK said: “In bringing forward a rise in State Pension age by seven years, the Government is picking the pockets of everyone in their late 40s and younger, despite there being no objective case in Age UK’s view to support it at this point in time.

“Indeed, it is astonishing that this is being announced the day after new authoritative research suggested that the long term improvement in life expectancy is stalling.

“For people in midlife and younger their State Pension may seem a lifetime away but the fact is that the change announced today will have a real impact on them later in life.”

The Labour Shadow Secretary for Work and Pensions said that “most pensioners will now spend their retirement battling a toxic cocktail of ill-health.” She added, “the government talks about making Britain fairer but their pensions policy, whether it is the injustice that 1950s-born women are facing, or today’s proposals, is anything but fair.”

Life expectancy is rising in developed countries. Therefore, governments will have to assess what age they pay out on pensions.

Countries such as Canada have initiated investment plans to ensure that their pension pots are sustainable for future generations.

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