Pension fury as experts warn retirement age must rise to 71 | Personal Finance | Finance
Warnings that the retirement age for state pension eligibility must rise to 71 have sparked a furious response.
Experts have told the Labour Government they must act now over the unaffordability of the UK’s state pension payment commitments. And one has even suggested the UK could see rioting in the streets if the pension age is raised again.
Chancellor Rachel Reeves is under growing pressure to increase tax thresholds as retirees “relying” on the state pension could soon be forced to pay income tax again.
And a think tank has suggested that the State Pension age must rise from 66 to 70 or 71 by 2050 to remain affordable.
However, Andrew Oxlade – director at investment fund managers Fidelity International – suggested such moves could lead to civil unrest. He told The Herald: “Consider, for instance, the violent pensions protests that have repeatedly erupted in France and the Russian demonstrations of 2018.”
In 2023, protesters clashed with riot police in France over a controversial pension reform law which raised the retirement age from 62 to 64 years old. And, in 2018, Vladimir Putin’s regime appeared to be threatened by protests over pension reforms which would give the average Russian just months of retirement.
Mr Oxlade said that “a decision to accelerate” the pension age rises in the UK was delayed ahead of the election. However, he said this will “need to be dealt with imminently”.
Increasing numbers of ‘baby boomers’ reaching retirement age – and triple lock State Pension payments – have further increased the cost pressure, said Mr Oxlade. He added that slower rises in the State Pension – which could mean abandoning the triple lock – was one method a Government could use to mitigate the soaring cost of pensions.
Mr Oxlade said another option would be to increase the age of State Pension eligibility. Various think-tanks have warned about the unaffordability of the State Pension,” said Mr Oxlade.
The latest came earlier this year from the International Longevity Centre. It suggested the State Pension age would have to rise to 70 or 71 by 2050 to remain affordable.”
Readers of the Herald reacted with fury in the website’s comment section. One reader, stevegg, said: “How many jobs can you physically and mentally do until age 71? How many people will be physically fit enough to work until age 71?
“This country will have one of the highest state pension ages in the world. I believe means testing of the state pension will be implemented before then, it’s always being talked about, but [is] political suicide for whoever does.
Meanwhile the government wastes tens of billions every year on foreign aid, boat people, incompetence and overpaying for goods and services.”
‘Bob the Beak’ commented: ” I think they’re going to come after those lucky enough to have company pensions or who are paying into their own pension funds, not caring that people are accepting lower salaries or ‘going without now’ to pay for their retirement.
“The days of a Welfare State that cared for the whole population are over. We are stealthily being moved towards a two-tier healtchare model like America i.e. If you can afford it, pay for it; if you can’t afford it, go without.”
‘Haxxby Lad’ said: “Think the Labour Government have already got wind of the cost. They’ve stopped the winter fuel allowance to try to freeze us to death.”
However, ‘Happy, Wokish, Lefty’ wrote: “I think the bit you have missed is idle pensioners who take everything and give nothing. They suck the life out of the country and put two fingers up to younger people who actually pay for their benefits. Pensions are a benefit, not a right.”
