State Pension  

Two thirds of savers concerned about working longer

Last month (August 19), a think tank suggested that the state pension age should increase to 75 by 2035.

The proposal – which also included raising the state pension age to 70 by 2028 – was made by the Centre for Social Justice, chaired by Iain Duncan Smith MP, former secretary of state for Work and Pensions, to tackle the challenges posed by an ageing society to the UK’s fiscal balance.

Mr Greer added: “The gradual increase in the state pension age is driven by demographic changes. An ageing society that means there are fewer and fewer working age people for every person in retirement. 

“In the context of the state pension, that creates an acute funding challenge because the state pension is run on a pay-as-you-go basis, with the government paying the state pension directly from tax revenues.

“And it is crucial to recognise that the long-term trend underpinning all this is that the government is growing less able to support retirement funding, gradually increasing our own individual personal responsibility for meeting the cost of retirement.”

amy.austin@ft.com

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