Working till 70?

The United Kingdom’s pension regulator has recently announced that the age for state retirement could rise further than current plans due to increased life expectancy and a lack of state pension funds.

With the British government already looking to increase the retirement age to 68, pension advisors are warning that this age may need to be increased even further. According to recent studies, the average life expectancy of a UK citizen rising by around 6 hours a day and pension levels will soon be unsustainable.

With not enough in the pension fund, the UK government has already started to worry. Having commissioned a number of reports to try and solve the issue. The general consensus is for pensionable age to rise to gradually to 68.

With the future still cloudy for British pensions, many experts are stating that it is time for individuals to take more responsibility by using alternative arrangements such as private pensions in order to safeguard their own future.

However, with the UK pension industry in a £41bn deficit, even this is a contentious issue, and thanks to the economic crisis, company pensions are also experiencing problems.

Recently, the financial company American Express announced that it had suspended paying contributions for all its UK employees for the next 18 months.  According to the firm, payments were ‘unaffordable.’

In the short term, economic advisors have stated that the pension issue is unimportant due to the fact it is a relatively static and slow moving issue.  However, with both sides of the UK pension industry in relative chaos, one begs to ask the question: ‘Is simply increasing the age of state requirement enough?’

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