According to the UK work and pensions minister David Blunkett, the state recognized age for becoming a pensioner could be increased to 67. The revelation comes as contentions that the retirement age will have to be raised to avoid future problems gather momentum.
Mr Blunkett has floated the possibility of holding back state pension uptake until 67 as a partial remedy to the apparent looming pensions crisis. In basic terms, a shortfall in the national pension pot resulting from consumers’ under-saving and the unfavorable demographic balance resulting from the ratio of pensioners to workers has created a timebomb which will leave future retiring generations with an inadequate pension.
A number of countermeasures have been suggested, including compulsory employer contributions, but the the idea of raising the retirement age appears among the most likely to be implemented. In fact, according to Mr Blunkett, the US has already committed to increasing the retirement age to 67. Meanwhile, in the UK the trend has already started as the government has put in place plans to raise the age for women from 60 to 65 by 2020.