Thu Sep 19 10:46:54 UTC 2024: ## State Pension Age Could Rise to 68 “ASAP” to Help Labour Balance Budget: LSE Report

**LONDON** – A new report from the London School of Economics (LSE) has proposed raising the state pension age to 68 “as soon as possible” to help the new Labour government, led by Sir Keir Starmer, address the nation’s budget deficit.

Currently, the state pension age is 66 and is scheduled to rise to 67 by 2028. Under current plans, it will reach 68 between 2044-46. The LSE report argues that accelerating this increase could provide a significant financial boost to the government.

The report highlights the growing strain on public finances caused by an aging population. “The number of people aged over 65 is growing rapidly relative to those aged 15-64,” states the report. “The size of the older group is now 30 per cent of the younger group; by 2070 they are expected to be 50 per cent.”

The LSE estimates that raising the pension age to 68 for a single year would generate £6.1 billion in savings for the Exchequer. However, the report acknowledges the potential hardship this could cause for pensioners.

“Pension benefits already cost five per cent of GDP, and growing numbers of people over 65 cannot be sustained at a reasonable standard of living unless more of them work,” the report states.

The LSE also notes the potential impact on the wellbeing of those affected. While the report acknowledges that raising the pension age could lead to some individuals working longer, it also warns of an average loss of 0.12 points of wellbeing (out of 10) for a year for those who would have received a pension at 67.

This proposal is likely to spark debate as Labour navigates the delicate balance between financial stability and the welfare of its citizens.

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