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Urgent warning made over UK pensions
Urgent warning made over UK pensions

The Independent

time05-08-2025

  • Business
  • The Independent

Urgent warning made over UK pensions

An industry expert has warned that the UK state pension age may need to rise to 80 without significant reforms, as the current system is becoming unaffordable. The state pension age is already scheduled to increase from 66 to 67 by 2028, with a further rise to 68 expected to be brought forward from 2046. The Office for Budget Responsibility projects the annual cost of the state pension could reach £200 billion by 2073, representing 7.7-8.4 per cent of GDP by the 2070s. Pensions expert Jack Carmichael suggests the cost could be even higher than official projections, potentially necessitating a state pension age of 80 to maintain affordability. To manage spiralling costs, the government may be compelled to either raise the state pension age more rapidly or reform the triple lock mechanism.

State pension age to hit 80 without reforms, expert warns
State pension age to hit 80 without reforms, expert warns

Telegraph

time05-08-2025

  • Business
  • Telegraph

State pension age to hit 80 without reforms, expert warns

Workers could be forced to wait until 80 to draw their state pension or pay 50pc more in National Insurance contributions by the 2070s, an expert has warned. The state pension age is already set to rise to 68 by 2048, but this is under review after the cost of the benefit hit £138bn a year. In its new report, the Office for Budget Responsibility (OBR) said that rising life expectancy and the triple lock could push the cost to £200bn by 2073. However, Jack Carmichael, of consultants Barnett Waddingham, estimated that the true increase could be as much as £8bn a year higher – requiring huge increases in either the state pension age or National Insurance contributions. According to the OBR, the total outlay on the current state pension is equivalent to around 5pc of the UK's GDP. In a report released last month however, it warned that a combination of the country's ageing population and the triple lock could significantly increase the long-term cost. In its main estimate, known as the central projection, the OBR predicted the state pension would hit 7.7pc of GDP by 2073-74, or around £200bn in today's terms.

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