Working until age 77...what job will I do?
Filed under: Retirement
The retirement age is already due to rise to 68 by 2046, something that has caused consternation in both the private and public sectors, but those people should think themselves lucky that they will get to collect their pension in their 60s.Penions Tools & Tips
Retirement Tips & Tools
It also predicted that the state pension age is going to have to increase quicker than the government has planned, and PwC has predicted it will hit 68 by 2031, affecting those who are aged 48 or younger. People in their late 30s can expect to wait until they are 70 to get their pension.
Penions Tools & Tips
Retirement Tips & Tools
It makes sense for the state pension to be linked to longevity – which is now enshrined in legislation thanks to the Queen's speech. We are all going to live longer and the UK bank balance isn't going to be able to withstand decades of state pension pay-outs for everyone (and nor will UK taxpayers).
However, there are very sensible counter-arguments that need addressing – will there be enough jobs for 77-year-olds to do?
It is unrealistic to think that a manual worker will be able to carry on well into their 70s – imagine the health and safety risks of having older people on building sites.
Companies will have to change their organisational models to accommodate older workers, potentially pushing younger generations out of employment.
There is also the question of health, will be people physically be able to carry on working? Life expectancy is increasing but according to figures from the Office of National Statistics, the number of years spent in healthy retirement is not keeping pace, so we are living longer but more time will be spent in ill health.
UK companies can't be expected to keep people on who are not healthy enough to do their jobs.
It seems that it is a problem without a solution; we need people to work longer because we can't afford to keep them in retirement but they may not be able to carry on working.
The only answer it seems is not to rely on the state to fund your retirement, start saving for your own financial future and hopefully when you hit 77, you'll be enjoying your country house in France rather than facing the daily grind.
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