Think Tank the Centre for Social Justice (CSJ) has called on the Government to raise the state pension age to 75 to provide a £182 billion boost to the economy.
Its report, Ageing confidently – Supporting an ageing workforce, recommends increasing the state pension age to 70 by 2028, before then further increasing it to 75 by 2035.
This would significantly affect hundreds of thousands of people currently aged 50 to 64 if implemented by a future Government.
The current state pension age is not due to rise again until 2026 when it will increase to 67, before rising again to 68 between 2044 and 2046.
The CSJ’s reason for increasing the state pension age is to “ensure that the old-age dependency ratio remains in the sustainable range of 20 to 25 over the next 20 years”.
The CSJ fears that Britain’s ageing population means that taxpayers face escalating costs unless people stay in work for longer.
It says hundreds of thousands of people aged 50 to 64 are deemed “economically inactive” and recommends helping older people “access the benefits of work” by providing support to them and employers, such as increased access to flexible working and training opportunities.
The change would have a significant impact on many people’s retirement plans and may make saving for a private pension far more important for many as they will no longer be able to rely on a state pension until they are considerably older.