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Latest News
29 Jul 2013

Young Britons Have Unrealistic Expectations About Retirement Age

New research from insurer Aegon UK suggests that most Britons aged 25 or under believe they are going to retire at the age of 65, without realising that they may not be eligible for a state pension until much later.

According to the Daily Telegraph, almost one in three young UK citizens plan to retire at 65, compared to just 13% who believe they will have to work until they are 70.

The government plans to introduce reforms, which will see those born after 6 April 1978 qualify for a state pension when they are 68. This can change further, as the Treasury noted that the state pension age might change in line with the average life expectancy.

At present, the government wants to raise the minimum retirement age from 65 to 66 for people aged around 59. Meanwhile, those who are aged 45 can expect to retire at 67, the Telegraph explained. These rules are actually an accelerated version of the plans that were originally introduced by Lord Turner, who later stated that the reform he proposed was not radical enough and called for a further increase of the state pension age to 70.

Pension experts estimate that the majority of those under 25 today will have to work until they are 69, while present day teenagers are not likely to retire before they are 70. However, this could further change over the next few decades, the news source noted.

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