Britain to raise pension age
- Advertisement -

July 20, 2017

The British government has announced plans to raise the state pension age to 68 seven years further than expected.

The country’s pension age will be hiked to 68 over two years starting in 2037, affecting the retirement plans of roughly 7 million people.

- advertisement -

The proposed change, which will help to ease an intense strain on pension finances, means an extra year on the job for workers born between April 1970 and April 1978.

Legislators must approve the change before it becomes law.

The age at which Brits are eligible for their pension is already set to rise to 66 by 2020 and 67 by 2028.

“As life expectancy continues to rise and the number of people in receipt of state pension increases, we need to ensure that we have a fair and sustainable system,” said Secretary of State for Work and Pensions David Gauke.

Britain is just one of many developed economies that have been forced to raise their retirement ages as life expectancy increases.

There are widespread concerns that a growing bracket of retirees will put unbearable strain on state pension funds, which are financed in a large part by young, working taxpayers.

“Failing to act now in light of compelling evidence of demographic pressures would be irresponsible and place an unfair burden on younger generations,” the U.K. government said.

The U.K. has offered a state pension to residents since 1948. It currently spends 5.2% of the nation’s GDP on state pensions.

In the U.S., the age to receive full social security benefits is set to rise gradually to 67.

In Canada, old-age pensions start paying out when you turn 65. But it will gradually increase to 67 by 2029, according to the OECD.


Previous articleNigeria CJ to lead Justices to London arbitration confab
Next articleHow to Handle Labour Surplus
ADR Daily is a specialized news portal with a focus on providing authentic news, information and research analysis on Appropriate Dispute Resolution (ADR), Human Resource Management (HRM) and Industrial Relations Management (IRM) in Ghana and beyond. This platform serves as an information resource base for the progress of the ADR, HRM and IRM industries, and seeks to promote professionalism in ADR practice by supporting a network of ADR professionals within and across nations and continents. ADR Daily keenly encourages the mass adoption of ADR mechanisms, particularly negotiation, mediation and arbitration for the resolution of disputes in all spheres, through the publication of industry news and information, as well as by deploying innovative awareness creation engagements.