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Work on longer and die earlier

Figures showing that for each year worked after 55, workers lose two years of their possible lifespan will give the Government an uphill task to convince people to work longer.

Data from the Boeing US pension scheme reveals workers who retired at 55 lived on average until 83. The reduction in lifespan for those who carried on working beyond 55 is such that those retiring at 65 on average die by the age of 66.8 years, effectively only surviving less than a year and a half after retiring.

Hargreaves Lansdown head of pension research Tom McPhail says lower-income workers face a double whammy because they are the ones who will not be able to afford early retirement and they also typically have shorter life expectancy anyway.

DWP spokesman Stuart Todd says the Government has no immediate plans to raise state pension age, because it would disproportionately affect low earners but it is committed to offering those who want to continue working past 65 the flexibility to do so.

Adair Turner&#39s Pension Commission has said that working lives will have to extend if tax is not to rise substantially to pay for pensions.

McPhail says: “It is an uncomfortable message, given the conclusions of the Turner report but the reality is that the later you retire the earlier you die.”

Todd says: “The reason that the basic state pension age will not rise is because a lot of people have worked in heavy industry all their lives and it is not fair for them to have to carry on.”

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