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The statutory retirement age in the United Kingdom will need to be raised to 71 by 2030 to keep the British pension system in balance. This is stated in a report from a longevity study center in the UK (ILCUK).
Source: BELGA
Today at 6:40 PM
In countries such as the United Kingdom, the population is rapidly aging. This means that the share of people of working age (15 to 64 years) is declining. To keep the number of workers per retiree with a government pension the same, the retirement age should evolve to 70 to 71 years, compared to the current 66 years, the report states.
In the United Kingdom, the state pays a pension. This currently amounts to a maximum of 203.85 pounds or 238 euros per week. Most retirees also have a second, private pension.
The United Kingdom plans to raise the retirement age to 67 between 2026 and 2028. It should rise to 68 in 2044.
The study center does note that letting people work longer is a theoretical solution, but research shows that in practice “by the age of 70 only 50 percent of adults” are still able to work. Another solution is to increase the employment rate in the labor force, from 78 to 85 percent. “Then it may be possible to keep the statutory retirement age below 70 from 2040, at least for a few years,” it said.
The ILCUK researchers are calling on the government to focus on preventing health problems, both in the elderly and in workers. The number of inactive people due to chronic illness has risen sharply in the United Kingdom since the corona pandemic. And the earlier someone develops health problems, the more pressure this places on the pension system. Because then there will be fewer workers to finance the pensions.