Retirement age could hit 81 in parts of London - here's where you'll have to work until you drop

Retirement age will be linked to future life expectancy

IDS smiling

Minister for work and ever later pensions, Iain Duncan Smith

Retirement? Forget it! In London you’re here to work. Possibly forever, or at least until you die of exhaustion in your dotage.

New research indicates that many people, particularly those living in pricier areas of London, will have to work until late into their seventies, and even into their eighties in order to maintain their current standard of living.

New government plans to review the state pension age could result in a significantly lengthier working period, amid concerns the current system is not “affordable in the long term.”

The changes would not take effect until 2028, meaning that those now younger than 55 would be affected.

The review is to be chaired by former head of the CBI, John Cridland, who has also previously been head of the Low Pay Commission.

The review is expected to announce its findings in May 2017.

Currently the retirement age for women is 60 and for men it is 65, though that is expected to rise to 66 for both by 2020.

It is then expected to rise to 67 for both men and women by 2028, and will be linked to life expectancy thereafter.

But pensions company Royal London recently published research that found today’s workers will need to retire at 81 to enjoy the same standard of living enjoyed by their parents.

At the moment, the average Brit who starts saving for a pension aged 22 (which doesn’t sound very average to us at LLB), and makes the minimum statutory contributions would need to work until the age of 77 to get a similar pension to their parents’ generation, Royal London said.

In some areas of London retirement age rises to 81 if people wish to claim their full pension and a state pension.

Westminster is the worst affected area.

Age you’d need to work to claim full pension + state pension, by area

Westminster: 81

Camden: 80

Wandsworth: 80

Bromley: 80

Richmond upon Thames: 80

Hackney: 79

However, a report by the Office for Budget Responsibility has only suggested the retirement age will hit 70 by the early 2060s.

Either way, the prospect of working until you are nearly dead is grim news for a significant proportion of the population.

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