Britons may have to work longer if Brexit sees a dramatic reduction in migration levels
John Cridland, the CBI director reviewing the state pension age with the Government, claimed the “Brexit Factor” had made the future of the state pension unclear.
New calculations suggest a “hard Brexit” whereby migration is dramatically reduced could push up the age of retirement and force Britons to work into their mid-70s.
- PM facing calls from Tories to secure rights of EU citizens in UK
- Sturgeon 'has GIVEN UP on stopping brexit being triggered in Commons'
Britons may have to work until their mid 70s
Mr Cridland’s report, expected to be published be in April, is expected to influence the Government’s decision on pension changes a month later.
He added the working pension age – a huge factor affecting state pensions – would be primarily affected by life expectancy, fertility and Brexit migration policy.
However his new report based on the most recent Office for Budget Responsibility forecasts do not take Brexit into account – meaning the estimates could soon become obsolete.
BORDER-FREE Schengen: Countries you can visit WITHOUT a passport Mon, January 23, 2017
If you are an EU national, you do not need to show your national ID card or passport when you are travelling from one border-free Schengen EU country to another. The Schengen Area is an area comprising 26 European states that have officially abolished passport and any other type of border control at their mutual borders.
1 of 25
A “hard Brexit” could lead to the state pension age being risen by 18 months for people under 40, a projection by consultancy firm Hymans Robertson has claimed.
The calculations are based on research at King’s College London which assume the number of migrants which sign up for national insurance numbers plummets from 600,000 to 140,000 in three years.
This would lead to more than a million people under the age of 70 paying the pensions of more than a million more people over 70 years old.
Law firm Eversheds Sutherland has issued a stern warning that if the Government does not raise the state pension age, a tax rise would be inevitable.
Get Quotes on Home Insurance
The calculations are based on King's College London figures
This may force the Government to increase state pension age, reduce the rate of the state pension or raise taxes
Francois Barker, a director at the firm, told the Telegraph: “All the signs are that Brexit is likely to reduce the number of people of working age coming into the UK from the EU and, unless this shortfall is made up elsewhere, the UK’s old-age dependency ratio looks set to rise even further than currently projected.
"This may force the Government to increase state pension age, reduce the rate of the state pension or raise taxes.”
A Department for Work and Pensions spokesman said: “We are committed to reviewing the state pension age each parliament and take into account the most up to date projections at the time.”
- Eurocrats 'beg states to agree to DEEPER INTEGRATION to save bloc'
- 'We want you to STAY' Britain wants EU nations to remain in bloc
- France's ploy to coax British bankers across the Channel RUBBISHED