Pensions Regulator warns of rising retirement age
David Norgrove, chairman of the Pensions Regulator, has told the BBC that he believes the retirement age could exceed 68 years of age.
Currently, the state pension age is 60 for women and 65 for men, this is set to rise to 68 and there are no plans to raise that, according to Pensions Minister, Angela Eagle.
In an interview with the BBC, Mr Norgrove said: “Given recent legislation is increasing the retirement age progressively to 68…I think it will end up higher than that.”
People are going to have to work longer, partly because we’re not going, as a nation, to save as much for retirement as we did in the past,” he added.
Mr Norgrove explains there is a lack of knowledge with regard to saving for a pension with the public thinking that pensions are very “complicated”.
Last week figures revealed that Britain’s 100 biggest companies have seen the values of their pension schemes plummet over the last 12 months due to the financial turmoil.
Consultant firm, Lane Clarke & Peacock, said firms listed in the FTSE 100 index now had a combined deficit of £96 billion – the largest on record.
In the meantime, a recent survey, commissioned by the BBC, revealed that saving for a pension is not a top priority for many UK adults.
The report revealed that half of adults in the UK aged between 20 and 60 are not putting anything towards a pension with the situation being worst for those under the age of 30.
In a bid to encourage Brits to save towards a pension, the Government is to introduce Personal Accounts in 2012 which will be a state-sponsored pension arrangement.
Employees will be enrolled automatically, contributing 4% of their salary. The employer will pay 3% and a further 1% will come from tax relief.