Home Business NewsBusiness “Triple lock” could well push retirement age past life expectancy

“Triple lock” could well push retirement age past life expectancy

28th Feb 17 11:20 am

How will this affect people?

The state pension age is set rise above the male life expectancy in poorer areas of the country to pay for the increase in pension payments, MPs say.

Paying for the “triple lock” which guarantees a state pension will always rise by at least 2.5 per cent, this means the age that people stop working will also rise to help sustain the increases.

According to figures from he Institute for Fiscal Studies, the pension age could rise to the age of 70.5 by 2060.

This is higher than the life expectancy for men in 26 different areas of England. This includes Manchester, Leicester, East London and the Wirral, and 162 areas of Scotland.

This could mean that men in poorer areas could be working all their lives without acquiring a state pension.

The committee’s chairman, Labour MP Frank Field, said: “With the triple lock in place the only way state pension expenditure can be made sustainable is to keep raising the state pension age.”

“This has the effect of excluding ever more people from the state pension altogether. Such people will disproportionately be from more deprived areas and manual occupations, while those benefiting most will be the relatively prosperous.”

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