A new study has revealed the UK has the most rapidly increasing retirement age in comparison with major EU countries. The findings come as the Government reviews accelerating the official retirement age for Brits, meaning current workers likely won’t be able to retire at the current state pension age of 66.
Two further increases are in the pipeline for British workers – a gradual increase to 67 is coming for those born on or after April 1960, and a gradual rise to 68 between 2044 and 2046 for those born in or after April 1977.
But as part of the review, the latter could be brought forward to between 2037 and 2039.
It will mean those born on or after April 1977 will have to wait until 68 to get their state pension payments – making them one of the last to retire in Europe.
The results of the review will be published by May 7 this year.
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Luca Rado, director of The Live In Care Company, who conducted the research, told Express.co.uk: “At the current rate, workers in their twenties and early thirties could be seeing retirement as far away as their mid to late seventies.
“Long gone are the days of retiring early on a state pension; this is already starting to halt, and in a decade or so, it might not even be a realistic option in the UK.
“By having a rapidly increasing retirement age, citizens can end up feeling somewhat downbeat and pessimistic about when they will actually retire; seeing a continually rising retirement age can therefore lead to a decrease in a nation’s GDP, happiness, and productivity.
“It may also discourage voluntary pension contributions if people believe that they are unlikely to benefit in retirement from money that they invest in earlier life.
Mr Rado also outlined that many countries in Europe have different retirement ages for men and women – and having a flat age for all genders can actually be detrimental to women.
He said: ““Retirement age equality undoubtedly has many benefits, however, the topic is much more complicated than it may initially seem.
Men and women can face different challenges when it comes to work, so a set age for retirement may not benefit everyone.
“For instance, some studies suggest that women experience their peak earning potential during their 50s and 60s, whereas men’s earnings tend to decline during those years.
“As a result, women may miss out on more wealth than their male counterparts by retiring at the same time or earlier than them.
“Given that women generally live longer than men, this can be particularly problematic during later retirement years.
“In fact, according to the National Institute on Retirement Security, women are 80 percent more likely than men to live in poverty after age 65.
“It remains to be seen what impact changing the retirement age will have on our society and whether or not this will have a positive impact on people’s overall well being.”
A spokesman for the Department for Work and Pensions said: “The review will consider whether the rules around state pension age are appropriate, based on a wide range of evidence including latest life expectancy data.”
The news has rattled many with plans to retire in their mid-60s, as bringing forward the timetable will leave millions waiting longer for retirement, particularly if they are dependent on the payments to keep them afloat in later life.