Retirement at 70

Ray Barrell of the National Institute for Economic and Social Research states that if the retirement age is increased to 70 within the next decade. By 2023 it would be the equivalent of raising income tax by 15p (from 20% to 35%) – without the negative impact on consumption of higher taxes.

That shows how expensive retirement is to the public finances. There would be great opposition from those who would have to work longer, but, raising the retirement age is one of the best ways to deal with the budget black hole. It raises significant amounts of money without creating economic disincentives.

Cost of Economic Crisis and Ageing