Wednesday 23 January 2019

Pension age set to increase to 75

Workers could be forced to stay in their jobs until they are 75 because of the crisis in private sector pensions.

The warning comes from the new head of investments in Bloxham Stockbrokers, James Forbes (pictured), who says the current pensions crisis is being completely overshadowed by the meltdown in the banks and public finances.

Instead of encouraging more people to save for retirement, the Government has signed up to cutting the tax reliefs on pensions for higher rate taxpayers as part of the €85bn IMF/ECB bailout, he adds.

Part of the problem was that people were living longer and were not saving enough. "You don't have to be an actuary to know that we are all living longer but we are not saving enough either."

He pointed out that today the average person who retires can expect to spend half their adult life in retirement.

"If this keeps going, to try to avoid a pension pot meltdown, employees -- that's you and me -- will just have to work longer and 75 could be the new 65 when it comes to retirement age."

This is assuming people can get jobs in their 70s and that they will be physically able to work at that age.

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