More pension news and it isn’t likely to receive positive feedback; according to new reports, the state pension age in Britain will need to increase to 70.
In addition, it’s rumoured that public sector workers will be made to pay more yet get less from their pensions in the future.
The warning was triggered by a bleak statement from the Office for Budget Responsibility that spending on old people is ‘unsustainable’.
At present, around 22.5% of Britain’s entire economic output is spent on ‘aged related expenditure’, such as pensions and the NHS.
The Government has already unveiled controversial proposals to bring forward an increase in the state pension age for men and women to 66, which has led to protests that female pensioners in particular could lose out as a result.
But it is likely to keep on rising to cut the massive cost of paying the state pension, currently £97.65 per week.
Experts say it could eventually be increased to 70. For public-sector workers, they are likely to be forced to pay more, retire later and see their final salary pensions replaced by a cheaper alternative.
Tony from Dartford, a member of the public, said: “We have the oldest retirement in the EU now and they want us to work until we drop.”