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Latest News
09 Dec 2013

State Retirement Age To Reach 69 In 2040s

Planned changes to the UK´s state retirement system may mean that millions of workers will have to retire later than they had planned. In the long anticipated Autumn Statement, chancellor George Osborne announced the reforms, stating that the move will result in a total of £400 billion being saved for the national budget over the next 50 years.

The overhaul will affect everyone who is aged under 50 at the moment, the Treasury explained. People will retire when they are 68 years old by the 2030s, while in the following decade, workers will only retire at the age of 69. The new rule will be applied according to average life expectancy and will seek to ensure that nobody spends more than a third of their lifetime in retirement. As life expectancy continues to rise, the final state retirement age will not be fixed for a few more years, the Telegraph informed.

Osborne stated that the move was one of the “difficult decisions” that needed to be made in order to make sure that the country´s finances are set on a solid foundation that will not give way and cause more economic instability in the long run. Although the worst of the financial crisis is behind the UK now, creating a steady budget balance will be critical over the next few years, so in the near future, more tax increases and spending cuts are to be expected, the Autumn Statement warns.

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