UK debt "will pull early retirement age to 70" Money The Guardian

Longer durations of early early early early retirement will leave a lasting and costly weight on destiny generations of workers. Photograph: Christopher Thomond

An ageing race and the bad condition of the open finance management will need the state grant age to be lifted to 70 by the center of this century, one of Britain"s heading consultancies warned today.

PricewaterhouseCoopers pronounced supervision plans to lift the grant age in 3 stages from 65 right away to 68 by 2046 did not go far enough, since the pointy enlarge in inhabitant debt caused by the retrogression of the past dual and a half years.

John Hawksworth, PWC"s arch economist, pronounced that the open should be offering a understanding by the state: work longer in lapse for an declaration that pensions would climb in line with normal earnings.

He combined that destiny governments would need to lift the grant age to 70 in sequence to pledge that the gain couple would sojourn in place.

"The honeyed mark enjoyed by the economy during the past thirty years as the post-war baby boomers changed by the workforce has the intensity to spin green as longer durations of early early early early retirement leave a lasting and costly weight on destiny generations of workers," Hawksworth said.

"Either taxes will have to climb or alternative policies need to regulate to understanding with the higher costs of state pensions, health and long-term care, as well as the large debt hangover from the tellurian monetary crisis," he said.

Hawksworth combined that plans to lift the grant age to 66 by 2020, to 67 by 2036 and to 68 by 2046 supposing piece of the resolution to the rising cost of early early early early retirement but did not go far enough.

The assets from raising the state grant age to 70 would be £9bn a year at today"s prices, sufficient to cover the infancy of the costs of an earnings-indexed simple pension.

"This would shorten severely the widespread of means-testing for destiny pensioners and equivocate adding to the already large burdens of open debt and taxation on the young kids and grandchildren of the baby boomers," he said.

PWC estimates that pulling the state grant age up to 70 would equivocate the need for higher taxes, that would volume to 2p on the simple rate of income taxation or a two-point enlarge in VAT.

The consultancy"s inform – Working Longer, Living Better – pronounced the changes to the state grant age should be accompanied by the scrapping of the "increasingly anachronistic" default early early early early retirement age for employees.