Cutting the futures of the young

More and more people are toiling into their old age new figures show, even as the government considers pushing the age of retirement further back for today’s young people.

Plans to change the state pension age could see those who are 30 or younger working until they are 70 for a reduced retirement income.

The proposals were released at the same time as it was revealed that the number of women working into their 70s has doubled over the last four years.

ONS data showed that the number of women working past 70 doubled from 5.6 per cent in 2012 to 11.3 per cent in 2016. During the same period the number of men working into their 70s increased from 10 per cent to 15.5 per cent.

Senior pension analyst at the Hargreaves Lansdown investment firm, Nathan Long, said, “This jump in those leaving work over 70 may simply be through individual choice.

Increasing strain

“However it is also a reflection of the increasing strain on the pension system. The best days of well-funded early retirement are behind us.”

In the years to come younger people are even more likely to be working into their old age.

Two separate reports for the government’s state pension age review – conducted by the department of work and pensions and former CBI chief John Cridland – recommend changes that would see people working longer and receiving less.

If the recommendations are accepted around 5.8m people under the age of 45 would be forced to work until they are at least 68. For those aged 30 and under the changes would mean they would have to be 70 before they can retire with a state pension.

Triple lock scrap?

There is also a proposal to scrap the triple lock in 2020, which ensures that the state pension rises by a minimum of 2.5 per cent per year. If the proposal is accepted those receiving state pensions would be even more vulnerable to inflation and increased costs of living.

Unite assistant general secretary, Steve Turner, said, “Increasing the state pension age will disproportionally affect low paid workers and punish people who cannot work because they’ve become too ill.

“By axing the triple lock and hiking up the state pension age the government would effectively be cutting the future earnings of workers who are now in their 30s and 40s.

“If this happens the only people who will be able to have any sort of retirement will be the wealthy.”