State pension age to hit 74 by 2080, says report

The age at which the state pension will be paid could rise to 74 for those born in 2010, according to the analysis of a leading accountancy form.

The report from PricewaterhouseCoopers (PwC) said that the state pension age will continue to increase by an additional year for every eight years. PwC said that the state pension age could be 70 by 2050, rising to 74 by the 2080s.

"This is no longer a far-off scenario; plans need to be put in place now," said Ed Wilson, a director in PwC's pensions practice. "By 2050 or earlier we think that the state pension age will have risen to 70. For many people for whom the state pension is a significant part of their retirement planning, their hopes of retiring at a particular age are having to change."

The PwC report follows hot on the heels of the Autumn Statement, in which the Government said that the state pension age would rise to 67 from April 2026. Previously, the move to 67 was scheduled to take place between 2034 and 2036.

As a result, PwC said, people will have to reassess their retirement finances: "People face a stark choice between working longer, saving more or retiring poorer," said Mr Wilson.