State pension age should rise to 75 by 2035 to boost UK economy, new report suggests

STATE pension age in the UK should rise to 75 by 2035 in a bid to boost the economy, a think tank has said.

Tuesday, 20th August 2019, 9:52 am
Updated Tuesday, 20th August 2019, 11:14 am
The Centre for Social Justice (CSJ) think-tank, headed by Tory former leader Iain Duncan-Smith, said evidence suggests the UK is not responding to the needs and potential of an ageing workforce with hundreds of thousands of people aged 50-64 deemed 'economically inactive'. Picture: Yui Mok/PA Wire

While the government threshold is already on the rise to 68, it could soar to match falling mortality and birth rates.

It comes after the Centre for Social Justice said in a report the UK’s economy ‘will suffer' if the potential of an ageing workforce is not realised.

Government research has predicted half of all adults in the UK will be over the age of 50 years by the mid-2030s.

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‘The state pension is an important benefit that provides security to those who have retired,’ the centre said in its Ageing Confidently report.

‘If we expect this benefit to continue along with other public services, a sustainable state pension age must be introduced.

‘Recommendations include accelerating the SPA increase to 70 by 2028 and to 75 by 2035.

‘This will ensure that the Old Age Dependency Ratio (Oadr) remains in the sustainable range of 20 to 25 over the next 20 years.’

Tory MP Iain Duncan Smith and John Mills, the CEO of consumer giant JML, were both part of the group that produced the report.

To make the rise feasible it said a host of ‘apparatus’ is needed – including better occupational healthcare, training in mental health first aid and further support for over-55s from the government’s Work and Health Programme.

It also suggests work should be made more flexible and ‘tailored mid-life MOTs’ should be rolled out for employees across the nation.

On raising the state pension age, the report added: ‘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.’

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