Former Confederation of Business Industry (CBI) leader John Cridland revealed the results of his appointed review of the UK’s pension deficit and recommended the UK government may need to extended the country’s retirement age and remove the “triple lock” on pensioner’s inflation protection. The report coincides with a government-sponsored report regarding raising the UK’s pensions age to lessen the stress on public spending.
According to the Cridland Report, the state pension age must rise from 67 to 68 by 2039. About 5.4m young Britons aged below 45 years old would be affected. The current pension age for women is 63 and 65 for men. The ages would rise to 65 together by 2018, 66 by 2020 and 67 by 2028. The implementation of the suggestion would enable the government to spend about 0.8 per cent less from its GDP for pensions.
Cridland said his review considers “the consequences of an aging society.” His aim with his suggestions was to guarantee that pensioners would have proper funding and make the future of pensions “fair and sustainable.”
The report also considers the possibility of Britain’s population effectively increasing. As healthcare and relevant technologies improve, the number of those passing the hundred-year-old mark would rise from 6,000 to 56,000 in 2050.
The Cridland report also highlighted that the government must remove the “triple-lock”guarantee to remove pressure on public finances. The “triple-lock” is designed to ensure the value of pensioner’s savings by 2.5% or adjusting to inflation values, whichever is higher.
Posted in: General Consultation