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The retirement age for middle-aged workers in the United Kingdom will need to rise to 71, due to the effects of increasing life expectancy and declining birthrates on the state pension, research suggests.
Between May 2026 and March 2028, the current pension age in the UK, which is 66, is anticipated to increase to 67, and is projected to rise to 68 by 2044.
A report from the International Longevity Centre, titled State Pension Age and Demographic Change, indicates that with a high rate of workers currently exiting the workforce before they reach state pension age primarily due to poor health, the current measures fall short of what is needed to sustain the pension system.
It implies that individuals born after April 1970 might need to work until the age of 71 before becoming eligible for pension benefits, The Guardian reported.
According to the research, there is a need for stronger emphasis on preventing ill health not only during old age but also from an early age throughout adulthood.
The Office for Budget Responsibility estimates that in the fiscal year 2023-24, pension benefits will amount to 136 billion pounds ($171.6 billion), with 124 billion pounds allocated to state pensions.
"In the UK, state pension age would need to be 70 or 71 compared with 66 now, to maintain the status quo of the number of workers per state pensioner," Les Mayhew, associate head of global research at the International Longevity Centre and author of the report, said.
"But if you bring preventable ill health into the equation, that would have to increase even more."
In response to the report, Jonathan Cribb, associate director and head of retirement at the Institute for Fiscal Studies, was quoted by The Guardian as saying that a rise in the retirement age to 71 was not a "realistic policy option unless you have a real emergency".
While Cribb acknowledged the potential necessity of raising the pension age, he emphasized the importance of implementing additional cost-saving measures rather than solely relying on this approach, which he said was not "realistic or equitable".
A UK government spokesperson, cited by The Guardian, assured that measures taken would guarantee the state pension remained "a sustainable and fair foundation of income for future generations".