The British coalition government has announced plans to tie the pension age to life expectancy, meaning that many will be forced to work until 70 before they can retire. That compares with 55 and 60 for women and men in Russia. Some people say the move is well overdue while others argue young people are once again being penalised while the baby boomers get off scot-free. VoR’s Vivienne Nunis hosts a discussion.
How do you imagine life when you’re 70? Are you gardening perhaps? Looking after the grandkids or cruising the Balearics and spending the inheritance? What if you’re still working, clocking up your half century in the office?
Prof Dempster has researched pension systems around the world and says that the rise of the retirement age is inevitable. He also calls the pension problem ‘the next big crisis’ which has already erupted in Japan and is waiting to happen in the UK.
Malcolm Booth, the CEO of the National Federation of Occupational Pensioners. He says: "The fire brigade have raised some concerns about the age change and the capabilities of their staff. My concerns are the same – people dealing with more mentally or physically demanding tasks, how will they be supported? Some other form of benefits? There’s an assumption that the improvement in medical care and longevity mean improvements in life generally. They may keep people alive longer but that doesn’t translate to being fit and able.”
Angus Hanton is the Co-founder of the think-tank Intergenerational Foundation. He says: "Wealthy retirees have been let off once again while young people have to work longer and pay more. The state pension should be increased to 70 immediately. The continued protection of the state pension triple lock undermines the chancellor’s claim that we are all in this together. The welfare cap once again rewards older generations to the detriment of younger workers by excluding the state pension. All workers should make NI payments and the over-65s should not be exempt."
Philip Booth, Programme Director at the Institute of Economic Affairs. He says: "Being out of work harms your health – even if it's because you've retired.”