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Welcome to the world of work: someone born today won’t get state pension until age 77, says Caroline Jones, Tax Director and leader of PwC’s Employment Solutions team in the West
The Queen Speech’s outlined plans that the state pension age will be linked to longevity, after increasing it to 67 by 2028. Recent research by PwC projects that it will have to rise again to 68 soon afterwards - by 2031 - so affecting those aged 48 or younger now. People in their late 30s today can expect to wait until they’re 70 to receive their state pension. Projections are based on the rate the state pension age has been accelerating and analysis of future life expectancies
Many people born today face working from 17 to 77. Most people will want to stop working sooner to do that, they’ll have to bridge the gap to the start of their state pension. The rising state pension age puts extra pressure on people to save. Even those people in middle age today whose state pension age might shift by a couple of years may want to start revising their plans now.
The gradually rising state pension age raises big questions for employers. For instance, what impact will the aging workforce have on opportunities for younger employees? How will companies have to adapt their organisation models and working practices? What changes do they need to make now to the benefits they offer their employees? Will they need to offer mid career breaks? This isn’t some futuristic scenario – the state pension age is increasing steadily and firms need to start planning and adapting now.
Email: Caroline Jones
Tel: 0117 928 1490