Tags: UK | pension | age | retire

UK Pension Age Raised to 69

By    |   Thursday, 19 December 2013 10:24 AM

Younger British workers will have to wait longer to retire because of the new reforms, according to CNNMoney.

The state pension age of 68 will now be enforced in the mid 2030s, approximately a decade earlier than planned. And by the late 2040s, it will rise to 69, CNNMoney noted.

The new reforms are based on the view that workers should be maintaining jobs more than two-thirds of their adult lives and with life expectancy rates on the rise the retirement age will have to increase accordingly.

Editor’s Note:
Weird Trick Adds $1,000 to Your Social Security Checks

The Organization for Economic Co-operation and Development (OECD) reported that by the middle of the century, the United Kingdom would have one of the highest pension ages in the world as a result of the new reforms.

By 2050, workers in the United States and Germany can anticipate retirement at 67, while workers living in Japan and Mexico can retire as early as 65. A normal pension age as high of 69 will be expected only in Italy and Denmark in addition to the United Kingdom, according to the OECD, CNNMoney reported.

Pensions are being linked to the increase in life expectancies, which place financial burdens on the state and creating challenges for the government to manage their borrowing.

With the new reform, the U.K. government expects to save $817 billion over 50 years.

In the United States, more Americans are working well past the normal retirement age of 65.

Research from the AARP Public Policy Institute shows the number of people aged 75 or older who are still working has skyrocketed, USA Today reported. This pool of workers has grown more than 76 percent in 20 years and made up 7.6 percent of the U.S. labor force in 2012.

Though most people clearly still retire before 75, research confirms that there is a growing trend of people working longer.

The average retirement age for men has increased to 64, and the average age for women has increased to 62, according to data from Center for Retirement Research at Boston College cited by The New York Times.

Many working Americans are falling behind on retirement preparedness, with 55 percent in fair or poor condition when it comes to being able to completely cover estimated essential living expenses in retirement, including housing, healthcare and food, according to Fidelity Investments' Retirement Preparedness Measure

"When you factor in the expectations many have of an early retirement, along with increasing longevity and sometimes overly conservative asset mixes for investments, you can see why many people are not as prepared as they need to be to cover their expected expenses in retirement," said John Sweeney, executive vice president of Retirement and Investment Strategies at Fidelity.

Editor’s Note: Weird Trick Adds $1,000 to Your Social Security Checks

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Younger British workers will have to wait longer to retire because of the new reforms, according to CNNMoney.
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2013-24-19
Thursday, 19 December 2013 10:24 AM
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