Chancellor George Osborne states UK’s youth will retire at 70

George Osborne is to use his autumn statement on Thursday to postpone British citizen’s retirement age to 70.

The move, which is linked to increasing life expectancy, could save the Government GBP 500 billion over the next half century.

In what has been described as the biggest pension reforms since the actual introduce of the UK state pension in 1908, today’s youth will have to wait until the mid-2060s before being able to retire.

Osborne’s statement is part of an effort to cement a long-term “responsible recovery” as Britain emerges from years of austerity.

The chancellor is also demanding GBP 1 billion in additional spending cuts to focus voters on the economy as the Government seeks to restore public finances and youth unemployment.

Cameron highlighted the new measures during his recent trade mission to China, “We have been working to a long-term plan and what you are going to see in this autumn statement is the next steps in that long-term plan, a long-term plan to turn the country around.”

He also stated the plan will “get us [the UK] out of our difficulties with debt and deficit and to secure jobs and recovery for all our people – a recovery for all.”

Retirement “rule of thumb”

Having already announced the state pension age is to be deferred to 67 years of age by 2028, the Government is to accept the findings of the Department of Work and Pensions review which uses ONS data for future deferrals.

The review will begin in the next parliament and report every five years

The Department recommends an individual should spend roughly a third of their adult life in retirement – a principle highlighted by Deputy Prime Minister Nick Clegg as being “the rule of thumb for a long time.”

The stipulated changes would see people born from the mid-1960s and later notice a dramatic increase between their own retirement age, and that of their parents.

By 2050, the UK Government predicts the retirement age will be lifted to 65 in Mexico, 65 in Japan, 67 in Germany, 67 in the USA, and 68 in Greece.

Read our insights and find out what countries have the lowest retirement age.

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