Think Tank suggests raising the state pension age to boost the economy.

19th August 2019.

The Centre for Social Justice think tank has suggested that the state pension age should be raised to 75 within the next 16 years to help boost the economy.

The news will anger those approaching retirement as it pushes their retirement even further away.

Many suspected that the retirement age would continue to rise as they approached, always tantalisingly out of reach.

While the state pension age is set to increase to 67 by 2028 and to 68 by 2046, the organisation, co-founded by former Conservative leader and work and pensions secretary Iain Duncan-Smith, wants to see a faster increase and believes it should climb to 70 by 2028 and 75 by 2035.

In its report, Ageing Confidently: Supporting an ageing workforce, the think tank says evidence suggests the UK is “not responding to the needs and potential” of an ageing workforce, with hundreds of thousands of people aged 50 to 64 seen as “economically inactive”.

The report says that by getting more people aged 55 to 64 to start work, out-of-work benefit costs would be drastically reduced and boost GDP by approximately 9% – around £182bn.

It recommended helping older people “access the benefits of work” by giving support to them and employers, such as increased access to flexible working and training opportunities.

In its report, Ageing Confidently: Supporting an ageing workforce, the think tank states: “Removing barriers for older people to remain in work has the potential to contribute greatly to the health of individuals and the affordability of public services.

“Therefore, this paper argues for significant improvements in the support for older workers.

“This includes improved healthcare support, increased access to flexible working, better opportunities for training, an employer-led mid-life MOT and the implementation of an ‘Age Confident’ scheme.

“As we prepare for the future, we must prioritise increasing the opportunity to work for this demographic to reduce involuntary worklessness.

“For the vulnerable and marginalised, a job offers the first step away from state dependence, social marginalisation and personal destitution.

“In addition, provided that this support is in place, we propose an increase in the state pension age to 75 by 2035.”

“While this might seem contrary to a long-standing compassionate attitude to an older generation that have paid their way in the world and deserve to be looked after, we do not believe it should be.

“Working longer has the potential to improve health and wellbeing, increase retirement savings and ensure the full functioning of public services for all.”

CSJ chief executive Andy Cook said: “Right now, we are not doing enough to help older people stay in work and the state pension age doesn’t even closely reflect healthy working life expectancy.

“By increasing the state pension age, we can help people stay in gainful and life-enhancing employment while also making a sound long-term financial decision.”

Ex-pensions minister Ros Altmann said the proposed changes “must not be allowed to happen”.

Opponents have said the move by the Conservatives must be stopped, arguing that although changes in pension attitudes were required due to big life expectancy differentials. Using age as a strict cut off is not good policy.

For large numbers anyway, the stark reality is that when they reach the state retirement age, retirement is not financially viable and they forced by circumstance to continue working into their 70’s and 80’s.