People may not be able to retire until they are 74
The Office for Budget Responsibility said that by 2063 people may not be able to retire until they are 74 to keep the cost of pensions down as more people live longer.
The state pension age is already due to rise from 65 to 66 in 2020, followed by hikes to 67 in 2028 and 68 by 2046.
Government papers show civil servants assume this will rise to 69 in the early 2050s.
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As more and more of us live longer beyond state pension age, the cost has increased
But the OBR, which draws up official spending and economic forecasts for Chancellor Philip Hammond, said that anyone born after 1989 could have to work until 74.
The OBR data also found the number of Britons reaching their 100th birthday may soar from 15,000 now to as many as a million by then.
This week the Department for Work and Pensions unveiled plans to boost the number of older workers which could see apprentices aged 60-plus in the workplace.
Anyone born after 1989 could have to work until 74
David Sinclair, director at the International Longevity Centre – UK, said: “Young people today can expect to live longer lives than their parents and grandparents, a fact which has got HM Treasury worried.
“As more and more of us live longer beyond state pension age, the cost has increased. And with more older people expected to live even longer in the future, the cost to the taxpayer could go up by even more.
“For the young and middle aged, the message is likely to be clear. You will have to work longer before you can access your pension.”
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David Sinclair said young people can expect to live longer than their parents and grandparents
Sir Steve Webb, a former pensions minister and now a director at mutual Royal London, said: “Our society could be transformed in ways for which we are totally unprepared. It’s clear 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. 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.”
Critics say the pension age increase does not take into account much lower life expectancy in some areas.
Former Tory pensions minister Baroness Altmann said: “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.”
Critics say the pension age increase does not take into account lower life expectancy in some areas
The DWP’s Fuller Working Lives report calls for retraining opportunities for the over 45s, and even for those approaching or past retirement age.
The report said: “We know that older people can and do access apprenticeships.
“In 2015/16 over 57,700 of those starting an apprenticeship were aged 45-59 and 3,500 were 60 years and over.”
A DWP spokesman said: “No decision has been made on future changes to current timetables.”
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