Pension age needs to rise in order to balance the books

A report by the Pensions Policy Institute think tank has concluded that the state pension age needs to increase to 72 years by 2030 in order for the UK government to "balance the books". If this particular recommendation was put in place then the cost of the state pension (to the government) would be the same as it was in 1981 and therefore take some pressure off the UK government budget. But is this really possible?

While the recommendation from the think tank is obviously controversial and one which will impact upon every individual in the UK, there is obviously a need to reduce the ever-growing burden of the state pension on UK taxpayers. The report also concludes that in order to give people enough time to adjust their pension arrangements a 10 year notice period of policy and age changes should be given.

The age of retirement in the UK is something of a hot topic at the moment as the government looks to reduce the burden on UK taxpayers while looking to focus finances upon those who need long-term assistance. The coalition government has already confirmed that the age of retirement for women will rise to 65 by 2020 although there will almost certainly be further changes to be introduced in the short to medium term.