Over 50s warned they’re going to must work longer – no retirement till 67 | Politics | News | EUROtoday

Over 50s have been warned they need to work far longer than earlier generations, with a brand new report stating that the UK is “strikingly underprepared” for an getting old society.

A bombshell report from the House of Lords, revealed right this moment [19 December 2025]warns that elevating the state Pension Age, at present 66 and set to rise to 67 between 2026 and 2028, is just not the reply as a result of many Britons already go away the workforce of their 50s.

Instead, the Economic Affairs Committee insists getting folks of their mid-50s and mid-60s to stay in or return to work is the one viable answer to avert monetary disaster.

Lord Wood of Anfield, the committee’s chair, handed down a extreme warning. People are having few youngsters and residing longer, he mentioned, however successive governments have didn’t concentrate on the seismic results an ageing inhabitants could have on the economic system and society.

“Raising the state pension age, which saves the Government money, but increases pensioner poverty as many people have already stopped working by their sixties, is a red herring,” the peer acknowledged.

“Getting more people in their fifties and sixties to stay in or return to work is key.”

The report paints an alarming image of the nation’s future. Office of Budget Responsibility forecasts warn that, with out main coverage modifications, borrowing would balloon above 20 per cent and debt would soar previous 270 per cent of GDP by the early 2070s.

And the nation’s dependency ratio (the proportion of non-working age folks supported by these in work) is projected to surge from 31 per cent to 47 per cent over the following half-a-century.

Fertility charges have collapsed to report lows. In 2023, England and Wales recorded simply 1.44 youngsters per lady, properly beneath the extent wanted to take care of a steady inhabitants.

By 2072, 27 per cent of the inhabitants shall be over 65 in comparison with 19 per cent simply three years in the past. Those aged over 85 will almost double to three.3 million by 2047.

The report demolished insurance policies beforehand touted by Governments as options to the disaster.

Even increased immigration ranges would show inadequate to handle the challenges, friends discovered. Efforts to spice up fertility charges have largely failed in different nations and would probably fail right here too.

Today’s younger folks face a good grimmer actuality. Lord Wood warned they might want to essentially change their method to monetary planning.

“To successfully confront this challenge the approach to financial management of today’s and tomorrow’s young people will need to change,” he mentioned. “They will need, from a much earlier stage in their lives, to plan and prepare to work longer and save more.”

The committee uncovered stunning findings about age discrimination. While it could scale back employment of over 50s, proof suggests probably the most damaging kind is self-directed, with older employees mistakenly believing discrimination is worse than it truly is and limiting their very own job functions.

Research reveals no systematic productiveness variations between older and youthful employees in most kinds of work.

The disaster in grownup social care compounds the issue. Peers known as the state of affairs a “scandal” and urged the Government to handle it urgently. An ageing inhabitants would require extra care employees, which means fewer folks obtainable for different productive sectors.

The report calls for rapid motion, resembling calling on the Government to repair issues with public service pensions that it claims discourage folks from working longer.

And it requires ‘widespread ignorance’ about retirement prices to be tackled. The committee known as for a public schooling marketing campaign and questioned whether or not monetary companies corporations are correctly organised to assist an ageing inhabitants.

Lord Wood’s remaining evaluation was damning. “The lack of a published strategy or forum for discussion on this topic demonstrates that this serious, but long-term, issue is not be taken seriously enough,” he concluded.

The Government’s response to date has centered totally on bettering productiveness. But friends warned this can’t be the only real answer given many years of failed productiveness enhancements and the dimensions of the fiscal problem forward.

The full report “Preparing for an ageing society” was revealed by the House of Lords Economic Affairs Committee following a nine-month inquiry launched in March 2025.