You Will Work Past 65

FUTURE PROOF: Pensions minister Steve Webb says workers should expect retirement age to rise by six months every year - and that the pensions industry faces a decade of change

Emma Wall 7 October, 2014 | 3:06PM
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Approaching retirement? Be prepared for the Government to move the goalposts. The pensions minister Steve Webb has warned that we are living longer, and the retirement age must be increased to match this.

The average age of retirement is currently 65 for men and 63 for women, but the Department of Work and Pensions has set out plans for this to rise by six month every year. The number of people in England aged 65 or older is expected to increase by 50% over the next 20 years. But the economy is not strong enough to support this growing sector of society, and to stop the public purse being dragged further into the red, State Pension age must rise to reflect demographics.

Webb said that if someone works just one more extra year they can add an essential 10% to their pension for life.

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About Author

Emma Wall  is former Senior International Editor for Morningstar