Retirement age in UK 'must rise'

Thursday, May 27th 2010

The retirement age must rise in order to support the cost of supporting an ageing population, according to an expert.

Robert Ellison, partner at Pinsent Masons, asserted many people in the pensions industry think 70 will become the state pension age within the next ten years.

His comments follow proposals announced in the Queen's Speech on May 25th, which said the government would review the timetable for increases to the state pension age.

The Pensions and Savings Bill currently states this age will increase to 66 between 2024 and 2026, with changes continuing in the future.

Mr Ellison explained all three parties pledged to take this action, so the announcement is not surprising.

"The retirement age has got to rise; the only question is how far and how fast?," he continued.

But the latest proposals is just one of many changes expected to occur regarding retirement age and pensions, Mr Ellison added.