The age at which people receive a state pension should go up to 70 by 2028 and 75 by 2035, a think-tank has urged.
State pension age is already being increased from 65 to 67 by 2028, but the Centre for Social Justice (CSJ) said it should be “accelerated” to avoid great cost to the taxpayer.
“Evidence suggests that the UK is not responding to the needs and potential of an ageing workforce,” the Ageing Confidently report out said. It calculated that by 2035 more than half of all adults in the UK will be over 50 years of age.
The CSJ said with life expectancy predicted to rise, an ageing society poses “significant challenges to the UK’s fiscal balance”.
“An increase in the Old Age Dependency Ratio (OADR) and a greater demand for public services along with an increase in state pension costs raises questions about the sustainability of our social security system,” the report stated.
The Conservative think-tank suggested that getting more people aged between 55-64 into work would cut costs of out-of-work benefits and would help boost the country’s GDP by around 9%.
It added: “Removing barriers for older people to remain in work has the potential to contribute greatly to the health of individuals and the affordability of public services.”
CSJ chief executive Andy Cook said: “By increasing the state pension age, we can help people stay in gainful and life-enhancing employment while also making a sound long-term financial decision.”