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Autumn Statement 2013: Changes to retirement age mean we all have to work for longer

By amerrell  |  Posted: December 05, 2013

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Millions learned today they will have to work for longer

before they collect their state pension.

Chancellor George Osborne delivered the news in the run up

to his Autumn Statement 2013 - his assessment of the state of Britain's

economy.

Government sources disclosed that people now in their 40s will

not get a state pension until they are 68. Those in their 30s will have to wait

until they are 69.

According to the Treasury the delayed retirement dates will

help save around £400 billion from the national pensions' bill over the next 50

years.

This is in addition to predicted of more than £100 billion

of savings already accounted for from planned rises to 66 by 2020 and 67 by

2028. These remain unchanged.

According to the Government the future changes in the

pension age will be based on the principle that workers should expect to spend

an average one third of their adult lives in retirement.

The formula is aimed at ensuring decent but affordable

pensions for people in their old age while maintaining "fairness across

the generations".

The theory being that people from different generations will

be able to expect to spend broadly the same of their lives contributing to and

receiving the state pension.

It is expected the formula will be applied for the first

time after the 2015 general election to fix the dates of the increases to 68 – likely

to be brought forward from 2046 to the mid 2030s - and 69 - expected to take

place by the late 2040s.

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