The number of Brits celebrating their 100th birthday will top a million in the 2060s
Millennials are bracing themselves against the prospect of finally kicking the nine-to-five when they are in the mid-seventies as people continue to live longer, healthier lives.
The Treasury predicted the retirement age will rise by nearly a decade in the 2060s to cover the cost of an ageing population.
It estimates the number of Brits celebrating their 100th birthday will top a million by that time, a massive spike from the 15,000 which currently reach the milestone.
The state pension age, which is currently 65 for men and increasing from 60 to 65 for women, is set to rise steadily over the years.
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The Government plan to raise it to 66 for both sexes, and then to 67 in 2028 and 68 in 2046.
And government papers show civil servants envisage this rising to 69 in “the early 2050s”.
But a bombshell was dropped by the Office for Budget Responsibility (OBR), responsible for creating official spending and economic forecasts for Chancellor Philip Hammond, when it outlined raising the age higher than ever before.
Someone born in Chelsea has a life expectancy of 88
The OBR says by 2063 that anyone born after 1989, in certain scenarios, can expect to be in work until they are 74.
Lib Dem Sir Steve Webb, a pensions minister in the Coalition government, said: “Our society could be transformed in ways for which we are totally unprepared.
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“It is clear that the Government has already built in an assumption of a pension age of 69 for today’s under-35s. But pension ages could rise much further and faster.
The Government must find better ways to manage pension costs
“A world where we cannot get a pension until we are 74 and a million people have celebrated their 100th birthday would need a total re-think of our approach to work, savings, health and care.
“The old age experiences of today’s younger workers are likely to be unrecognisable from those of their parents and grandparents.”
The move was criticised by former Tory Minister Baroness Ros Altmann, who urged the Government to come up with different ways to manage pensions and the ageing UK population.
The Government plan to raise it to 66 for both sexes, and then to 67 in 2028 and 68 in 2046
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She said: “The Government must find better ways to manage pension costs than just constantly making people wait longer.
“At the moment the Government plans to increase state pension age as average life expectancy rises.
“But this completely ignores the fact that there are huge variations in life expectancy across the country and many people will die much younger than average.”
Government papers show civil servants envisage this rising to 69 in “the early 2050s”
For example someone born in Chelsea has a life expectancy of 88, whereas that drops to 77 in parts of Tottenham.
Two reports, one a Government-backed review by former CBI boss John Cridland and a separate report by the Government Actuarial Department are both due in May.
The Department of Work and Pensions said: “No decision has been made on future changes to current timetables.”
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