Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

UK retirement age could hit 68 in the 2030s under pension plan

by January 25, 2023
January 25, 2023
UK retirement age could hit 68 in the 2030s under pension plan

Britons will have to work for longer before claiming the state pension under plans to save the government billions of pounds by raising the official retirement age to 68 sooner than initially planned.

The present threshold of 66 will increase to 67 in 2028 and is due to hit 68 in 2046. However, ministers are looking at bringing forward the change to as early as 2035, affecting those who are 54 and under today.

An announcement is expected by Jeremy Hunt this year. The Sun, which first reported news of the discussions in Whitehall, said the chancellor favoured raising the retirement age to 68 in the mid-2030s but that Mel Stride, the work and pensions secretary, was pushing for 2042.

Last month the government began a statutory review of the state pension age, with findings to be published in May. Ministers believe the changes are necessary to make pensions affordable to the taxpayer given the ageing population. The last rise saved the Treasury about £5 billion.

Critics said the move would disrupt the plans of those already planning for retirement and could alienate voters at the next election.

The pension age was 65 for men and women in 2018. It is gradually rising to 67 by 2028. Under the present law it will hit 68 by 2046, although government policy is that it should happen by 2039. Ministers want to leave at least ten years between any change and its implementation, so 68 could be the retirement age as early as 2033.

Raising the state pension age saves the Treasury billions of pounds. Putting it at 68 a year earlier would spare the taxpayer about £10 billion, according to analysis by pension experts. LCP, a pensions consultancy, estimated that about £8 billion would be saved in state pension payments and at least £1.3 billion would be raised in taxes on extra earnings.

The move comes as Britain’s largest broker estimated that just one in three high earners with household income above £100,000 are on track to afford a comfortable retirement lifestyle.

Fewer than one in seven households are on track to afford a comfortable lifestyle in retirement, according to Hargreaves Lansdown, Britain’s largest broker. Even for households earning £100,000 a year the figure is one in three.

Comfortable retirement is defined by the Pensions and Lifetime Savings Association, an industry body, as requiring an annual income of £54,500 for a couple. It would cover two foreign holidays a year and up to £1,300 per person for clothing.

Read more:
UK retirement age could hit 68 in the 2030s under pension plan

0
FacebookTwitterGoogle +Pinterest
previous post
UK economy growth prospects gloomier than predictions leaving Hunt with budget black hole
next post
House Speaker McCarthy rejects Jeffries’ demand to reappoint Schiff, Swalwell to Intelligence Committee

You may also like

Calls grow for Rachel Reeves to reform inheritance...

October 14, 2024

UK manufacturing growth slows amid shipping delays and...

July 2, 2024

Is the Sharing Economy Relevant to B2B Sectors?

February 27, 2024

HSBC glitch hits Customers and businesses on one...

November 24, 2023

European fightback over EV challenge from China with...

February 28, 2024

Salmon Scotland urges further talks to scrap 10%...

May 8, 2025

Tony Blair urges Labour to embrace AI or...

July 9, 2024

The latest trending technologies in manufacturing

May 25, 2023

Millions of Brits in for shock charges as...

August 9, 2022

Interest rate rises to 3 per cent after...

November 3, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Senate Republicans ram Trump’s ‘big, beautiful bill’ through key test vote

      June 29, 2025
    • Chief Justice Roberts sounds alarm on dangerous rhetoric aimed at judges from politicians

      June 29, 2025
    • Britain’s fastest-growing firms revealed for 2025: Dfyne, Nala’s Baby and Hawkstone lead the charge

      June 29, 2025
    • Schumer to force Senate reading of Trump’s entire ‘big, beautiful bill’

      June 28, 2025
    • Rubio condemns Iran’s ‘unacceptable’ threats against IAEA director

      June 28, 2025
    • Key blue state Republican says Senate’s local tax write-off offer is a ‘good deal’

      June 28, 2025

    Categories

    • Business (8,330)
    • Investing (2,081)
    • Politics (15,853)
    • Stocks (3,177)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved