State pension age is moving towards mid-80s, warns PwC
INCREASING the pension age in line with life expectancy could add a decade to the average working life of a child born this year, according to PwC estimates published yesterday.
The state pension age will rise to 67 by 2028 under current plans, but will have to rise to 68 by 2031 to keep up with increasing life expectancies.
To give the average worker 20 years of retirement, the pension age will rise to 69 for those born in 1970, 70 for those born in 1974, 75 for those born in 1999 and 77 for those born in 2012.
People born in 2050 can expect to work until they are 84, PwC believes.
However, the retirement ratio will continue to worsen despite these rapid increases in the pension age – there were 3.6 workers for every one pensioner in 1970, but just 3.2 per pensioner now and there will be 2.9 per retiree in 2050.
“Most people will want to stop working sooner but may not be able to afford to bridge the gap to the start of their state pension,” said PwC’s Raj Mody.