Raising the pension age and what it means for workers

The government could increase the state pension age to 68 as early as 2039

- THOMAS KINGSLEY, ALASTAIR JAMIESON

Raising the retirement age would leave hundreds of thousands of Britons poorer in later life, campaigners say following reports the chancellor is to raise it to 68 before the end of the 2030s.

In a bid to save billions for the Treasury, chancellor Jeremy Hunt could make the announcement as early as March. If the plans go ahead, millions born in the 1970s and after could be affected by the change. Under current legislation, the retirement age would rise to 67 in as little as four years’ time, and then to 68 by 2046 – although the government already wants to bring the latter forward to 2039.

But Caroline Abrahams, charity director at Age UK, said: “We feel strongly that there is no justification for raising the state pension age at the moment, especially as we know that the people who will lose out the most are those unable to work due to ill health and caring responsibilities, as well as anyone who becomes unemployed in mid-life and then finds it impossible to get another job, due in part to a lack of training opportunities as well as rampant ageism in the labour market.