Latest Channel 4 News:
Row over Malaysian state's coins
'Four shot at abandoned mine shaft'
Rain fails to stop Moscow wildfires
Cancer blow for identical twins
Need for Afghan progress 'signs'

Pension age 'should be increased'

Source PA News

Updated on 24 February 2010

The age at which people can start drawing their state pension should be increased to 70 to help fund higher pensions and reduce public debt, a report has claimed.

PricewaterhouseCoopers (PwC) said the state pension age should be raised faster and further than is currently planned.

The Government has already introduced legislation to raise the age at which people can claim their state pension from 65 in 2020 to 68 by 2046.

But PwC said it was questionable whether this went far enough, particularly given the sharp rise in public debt, due to the global financial crisis, since the legislation was introduced in 2007.

It argues that the Government should instead raise the state pension age to 67 by 2030 and to 70 by 2046. It claimed this would help to offset the rising cost of the state pension due to an ageing population, while it could also boost tax receipts as some people were likely to opt to work longer as a result of the higher state pension age.

The group said the move could save the Government around £9 billion in today's money by 2046.

The report also estimates that the increase would cover around 60% of the projected rise in spending on the state pension between 2010 and 2046 due to plans to increase it each year in line with earnings rather than prices.

But the group said if the state pension age was raised further, the default retirement age for employees should also be scrapped.

John Hawksworth, head of macroeconomics at PwC and co-author of the report, said: "Either taxes will have to rise or other policies need to adjust to deal with the higher costs of state pensions, health and long-term care, as well as the large debt hangover from the global financial crisis.

"A phased increase in the state pension age is part of the solution and the Government already has plans to increase this to 68 by 2046, but we believe it needs to go further and faster, with state pension age rising to 67 by 2030 and 70 by 2046."

These news feeds are provided by an independent third party and Channel 4 is not responsible or liable to you for the same.

Send this article by email

Watch the Latest Channel 4 News

Watch Channel 4 News when you want

Latest Business & Money news

More News blogs

View RSS feed

Faisal Islam on Twitter


Anyone work in a business that has received government notice about their caps to non-EU employment? please get in touch...

Today at 11:16

Follow us

How to tweet

How and why to follow the Channel 4 News family on Twitter.

Most watched


Find out which reports and videos are getting people clicking online.

Channel 4 © 2010. Channel 4 is not responsible for the content of external websites.