The big news in Osborne’s Autumn Statement was bringing forward the rise in the state pension age. Although officially the change was bringing forward the increase in pension age to 68 by ten years – to take effect in the 2030s – the headlines focused on the implication: by the 2060s, the retirement age will be 70.
Amid groans from today’s teenagers, and forecasts of young people reversing the decision by the time they become legislators, a serious question has to be asked – is “potentially one of the most far-reaching reforms since the introduction of the state pension” fair?
Leisure for longer
Let’s start with why the government feels this move is necessary. By now the narrative should be familiar – we have an ageing population, which means the ratio of workers to pensioners is becoming less favourable. Fewer workers have to contribute to paying for more pensions than ever before, and this looks set to be a continuing trend. And retirement lasts longer. Continue reading