The reason for increasing the retirement age was:
- Increase in life expectancy. Current retirement ages were set many decades ago, when life expectancy was much lower.
- Demographic changes that increase the proportion of retired people. See: Demographic Time Bomb
- Increasing retirement age and maintaining reasonable state pension is more attractive than the alternative of increasing taxes or cutting spending.
The government need to automatically set the retirement age against changes in life expectancy. As life expectancy rises, the retirement age should automatically rise. The current state of government finances only increase the urgency of this.
The government may be emboldened by A Financial Times/Harris survey of 1,126 adults in Britain which found that 60 per cent of respondents would support working beyond the current state pension age in order to receive a bigger pension. (opinions shift to working longer at FT)
- We may need to change our attitudes to a cut off point moving from working full time to being full time retired. Many there is more scope for older workers working part time.
- The government also need to deal with the current means tested pension credit which is a disincentive to save for a private pension