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Warning on retirement age

Pointon York global economist Roger Nightingale says it is inevitable that the retirement age will have to rise to cope with the aging population.

He told a debate on pension provision hosted by Pointon York that raising the retirement age is the only way to redress the balance between the working and retired populations.

Nightingale said: “It is a matter of having the workers pay for the people who have stopped working. If you have an increase in life expectancy, you have under current rules a big increase in the number of retirees and a constancy in the number of workers. It is an absolute disaster and no system on earth will solve that problem without a gigantic contribution from the worker to meet the requirement of the retiree.

“You have to reduce the number of retirees relative to the number of workers. The politically correct way of dealing it is to raise the retirement wage.”

Syndaxi managing director and Personal Finance Society chairman Robert Reid suggested an ongoing sliding retirement age because average life expectancy will rise over time.

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