For those enamored with defined benefit days of yore, especially in the government space, consider the following—millions of Brits now in their 50s may have to work until the age of 68 after a surprising (reported as a shock!) review of the country’s retirement pension system.
Wanting to work to age 68 is one thing, but having to quite another.
Our brethren across the pond “are considering a shake-up of the [pensions’] timetable that could see the planned rise in the state pension age from 67 to 68 brought forward by as much as 16 years,” according to The Daily Mail.
Under the most radical option the change would happen in 2030 and would see everyone presently under 54 working a year longer than they had been led to expect, the paper adds.
“But even the best-case scenario would see the rise in the pension age brought forward by five years to 2041, affecting people in their early 40s.”
The change is designed to make the pensions system more affordable, it notes.
But Lib Dem leader Tim Farron accused ministers of “creating another pensions bombshell for another generation of people.”
And former pensions minister Baroness Altmann said it would be “grossly unfair to expect people to work even longer when many in ill-health face such a short retirement.”
The official retirement age in Britain is already being increased from 65, and is due to rise from 67 to 68 between 2044 and 2046.
But a review by the Government Actuary’s Department (GAD) commissioned by ministers suggested this date would have to be brought forward.
It said that, under a best-case scenario, the rise could happen between 2039 and 2041. Under the worst-case scenario it would be between 2028 and 2030, the Mail said.
“Telling millions the age they get their state pension will rise to 68 in little over a decade, when they were expecting it to happen at 67, would be hugely controversial,” it concludes.
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
