Tuesday, October 7, 2025
  • Login
Euro Times
No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology
Euro Times
No Result
View All Result

State pension age could rise to 80 unless major government reform made, expert warns

by Karl Matchett
September 17, 2025
in Finance
Reading Time: 4 mins read
A A
0
Home Finance
Share on FacebookShare on Twitter


Signal as much as our free cash e-newsletter for funding evaluation and professional recommendation that can assist you construct wealth

Signal as much as our free cash e mail for assist constructing your wealth

Signal as much as our free cash e mail for assist constructing your wealth

Independent money

An trade professional has warned that the state pension age could must rise to 80 with out dramatic reforms, amid issues the nationwide invoice can be “fully unaffordable” as life expectancy will increase.

The UK’s state pension age is ready to extend from 66 to 67 between 2026 and 2028. There’s a additional improve to 68 lined up for 2046 however that is extensively anticipated to be introduced ahead considerably, with a wider pensions overview underway.

Nonetheless, the annual value of the state pension is rising and persons are residing longer – that means larger pension payments for longer. The most recent report from the Workplace for Finances Accountability (OBR) recommended the associated fee might be £200bn a 12 months by 2073.

The upshot is that both the triple lock must go or individuals must contribute much more to it throughout their working lives, with estimates saying the state pension will value 7.7-8.4 per cent of GDP by the 2070s.

Jack Carmichael, a pensions professional and actuary at Barnett Waddingham, warns that may’t be paid for in present phrases, and may even be undershooting the fact by then, too.

“A extra cautious strategy can be to imagine a closing of the life expectancy hole between the people with the bottom and highest life expectancy. Below this various, the annual value of the state pension would improve by round £8bn a 12 months – 4 occasions larger than the OBR’s central projection,” Mr Carmichael advised the Telegraph.

“Preserving the associated fee at an analogous proportion of GDP would then require an enormous improve within the state pension age, probably as much as the dizzying heights of 80.

“Even when the central projection is right and state pension spending hits 7.7pc of GDP, the associated fee continues to be going to extend by nearly half in right now’s phrases. That’s fully unaffordable. Staff are both going to should contribute 50pc extra to the state pension or [the government is] going to have to vary the system not directly.”

Different consultants have mentioned the pensions system might be bringing in lower than it pays out in as little as a decade.

Trading 212 logo

Get a free fractional share value as much as £100.
Capital in danger.

Phrases and situations apply.

Go to web site

ADVERTISEMENT

Trading 212 logo

Get a free fractional share value as much as £100.
Capital in danger.

Phrases and situations apply.

Go to web site

ADVERTISEMENT

Meaning this authorities – or not less than its overview – might need to behave now regardless of the clear unpopularity of doing so.

“This newest state pension age overview, nonetheless, could ultimately power the federal government’s hand,” mentioned Rachel Vahey, head of public coverage at AJ Bell.

“State pension advantages are one of many single greatest bills for the Treasury and account for greater than 80 per cent of the £175bn pensioner welfare invoice. With out coverage intervention, state pension prices are set to spiral to almost 8 per cent of GDP over the subsequent 50 years based mostly on the present trajectory, up from 5.2 per cent right now.

“One choice is to boost the state pension age larger and sooner than at present deliberate. Though the elephant within the room is that state pension age is only one lever authorities has to assist handle the price of the state pension – the opposite is reforming the triple lock.”



Source link

Tags: AgeexpertgovernmentmajorPensionreformRiseStateWarns
Previous Post

UK inflation data for August 2025

Next Post

Fascism Scholar Sounds Alarm: We’re Now In ‘Next Phase’ Of Trump Authoritarian Playbook

Related Posts

Experts explain how to decide if you should you take profits from investments – or let your winners run

Experts explain how to decide if you should you take profits from investments – or let your winners run

by Holly Mead
October 7, 2025
0

How a lot revenue is sufficient revenue, earlier than you begin to promote your shares or funds?Greg Eckel, portfolio supervisor...

Businesses in UK consult ChatGPT for advice: Ravical

Businesses in UK consult ChatGPT for advice: Ravical

by GlobalData
October 7, 2025
0

AI agent platform Ravical's newest analysis has revealed that 64% of companies now seek the advice of ChatGPT previous to...

Military pay date may pressure Trump and Congress if shutdown drags on

Military pay date may pressure Trump and Congress if shutdown drags on

by Jeff Cox
October 6, 2025
0

Troopers march throughout a army parade to commemorate the U.S. Military's 250th Birthday in Washington, D.C., U.S., June 14, 2025....

Bari Weiss Will Run CBS News for the Ellison Hasbara Empire

Bari Weiss Will Run CBS News for the Ellison Hasbara Empire

by Nat Wilson Turner
October 7, 2025
0

That is Bare Capitalism fundraising week. 1085 donors have already invested in our efforts to fight corruption and predatory conduct,...

Abolish the Bureau of Labor Statistics

Abolish the Bureau of Labor Statistics

by Patrick Carroll
October 7, 2025
0

President Trump prompted a substantial stir in Washington when he fired Commissioner of Labor Statistics Erika McEntarfer again on August...

Hogs Showing Strength to Round Out the Week

Hogs Showing Strength to Round Out the Week

by Barchart
October 6, 2025
0

Lean hog futures are exhibiting some shopping for on Friday, with noon positive factors of 35 to 65 cents. USDA’s...

Next Post
Fascism Scholar Sounds Alarm: We’re Now In ‘Next Phase’ Of Trump Authoritarian Playbook

Fascism Scholar Sounds Alarm: We’re Now In ‘Next Phase’ Of Trump Authoritarian Playbook

U.S. Army shuts down longtime ISR workhorses

U.S. Army shuts down longtime ISR workhorses

Marco Rubio Outlines US Vision for Peace in the MidEast on Oct 7 Attack Anniversary

Marco Rubio Outlines US Vision for Peace in the MidEast on Oct 7 Attack Anniversary

October 7, 2025
China’s Central Bank Buys Metal For 11th Month In Row

China’s Central Bank Buys Metal For 11th Month In Row

October 7, 2025
Experts explain how to decide if you should you take profits from investments – or let your winners run

Experts explain how to decide if you should you take profits from investments – or let your winners run

October 7, 2025
Businesses in UK consult ChatGPT for advice: Ravical

Businesses in UK consult ChatGPT for advice: Ravical

October 7, 2025
Americans less confident about woman in White House – poll — RT World News

Americans less confident about woman in White House – poll — RT World News

October 7, 2025
NYSE-owner Intercontinental Exchange  billion Polymarket stake

NYSE-owner Intercontinental Exchange $2 billion Polymarket stake

October 7, 2025
Euro Times

Get the latest news and follow the coverage of Business & Financial News, Stock Market Updates, Analysis, and more from the trusted sources.

CATEGORIES

  • Business
  • Cryptocurrency
  • Finance
  • Health
  • Investing
  • Markets
  • Politics
  • Stock Market
  • Technology
  • Uncategorized
  • World

LATEST UPDATES

Marco Rubio Outlines US Vision for Peace in the MidEast on Oct 7 Attack Anniversary

China’s Central Bank Buys Metal For 11th Month In Row

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • Finance
  • Business
  • World
  • Politics
  • Markets
  • Stock Market
  • Cryptocurrency
  • Investing
  • Health
  • Technology

Copyright © 2022 - Euro Times.
Euro Times is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In