ALMOST every Brit in their 20s can expect to work until 74, according to a bombshell prediction.
The Treasury’s independent forecaster says the state pension age may rise by nearly 10 years by the early 2060s to cover us living longer.
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Today's 20-somethings are likely to be at work until they're 74Credit: Alamy
It adds the number of Brits reaching 100 could have soared from 15,000 now to as many as a million by then — equivalent to the population of Birmingham.
The state pension age is already due to rise from 65 to 66 in 2020, followed by a hikes to 67 in 2028 and 68 by 2046.
Government papers slipped out last month show civil servants assume this will rise to 69 in “the early 2050s”.
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The Treasury's independent forecaster predicts state pension ages will increase like this over the next 40+ years
But the Office for Budget Responsibility, which draws up official spending and economic forecasts for Chancellor Philip Hammond, goes far beyond anything the pensions industry has seen.
It says that under certain scenarios anyone born after 1989 could have to work until 74 by 2063.
Last night Lib Dem Sir Steve Webb, a pensions minister in the Coalition, told The Sun: “Our society could be transformed in ways for which we are totally unprepared.
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The Office for Budgetary Responsibility suggests anyone born after 1989 could have to work until 74 years old, suggesting a radical rethink of work and savings is neededCredit: Reuters
“It is clear that the Government has already built in an assumption of a pension age of 69 for today’s under-35s. But pension ages could rise much further and faster.
“A world where we cannot get a pension until we are 74 and a million people have celebrated their 100th birthday would need a total re-think of our approach to work, savings, health and care.”
He added: “The old age experiences of today’s younger workers are likely to be unrecognisable from those of their parents and grandparents.”
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Former CBI boss John Cridland is carrying out a Government-backed review into pension costs – and is due to report back by May. A separate report by the Government Actuarial Department is also due to report back by then.
In October he proposed allowing ‘early-access’ to pension pots for Brits who have been on the factory floor, or live in places with low life expectancy.
While someone from Chelsea can expect to live to 88, life expectancy is just 71 in poorer parts of Tottenham. The report also urged Ministers to consider scrapping the ‘Triple Lock’ that guarantees a 2.5 per cent annual pension rise.
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Critics say the pension age increase doesn't take into account much lower life expectancy in some areasCredit: PA:Press Association
Former Tory Minister Baroness Altmann said: “The Government must find better ways to manage pension costs than just constantly making people wait longer. This completely ignores the huge variations in life expectancy across the country.
“At the moment the Government plans to increase state pension age as average life expectancy rises. But this completely ignores the fact that there are huge variations in life expectancy across the country and many people will die much younger than average.”
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Former Tory Minister Baroness Altmann said the government would need to find a better strategy for managing pension costs than making people wait for itCredit: PA:Press Association
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