New graduates to wait until 71 for state pension

NEW graduates in Britain will need to work until they are 71 to qualify for a state pension after the government decided to link retirement age to increased life expectancy.

Students who leave university this year can expect to work three years longer than they would do under current plans, while a child born today will have to wait until they are 74 before they can retire, according to experts.

The move by chancellor George Osborne to create an automatic link between longevity and the pension age means that tens of millions of people under 50 who expected to retire in their middle to late 60s will have their state pensions shunted between one and three years further back.
Analysis by the country's leading experts in longevity and public sectorpensions, Club Vita, suggests that a child born today will have to wait until 74 at the earliest for a state pension. Club Vita is a sister company of Hymans Robertson, a key player in advising on reform of all public sector schemes.