Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

'Millennial' and 'Generation X' votes at risk if UK government follows France in raising state pension age

'Millennial' and 'Generation X' votes at risk if UK government follows France in raising state pension age

With the cost of the state pension expected to rise to over £100bn, the government may consider accelerating planned rises in the age at which we qualify for one. But Sky's Ian King says that could come at a political cost, as evidenced across the Channel

France has been paralysed by strikes today as much of the country, as predicted, makes clear its unhappiness at President Emmanuel Macron's push to raise the state pension age from 62 to 64 years of age.

Mr Macron argues that the measure, which would save the French government an initial €17.7bn (£15.5bn) per year, is necessary because otherwise, due to the ageing population, the state pension will become unaffordable.

The French president believes raising the state pension age is preferable to either cutting the state pension or retaining the status quo by either increasing government borrowing or putting up taxes.

Workers in France are holding a day of strikes and protests

UK state pension age rising to 68 by 2046

Events in France have prompted some to ask whether the pension age may also have to rise in the UK.

The answer is that it already is.

The pension age was set at 65 until November 2018, since when it has gradually risen to the current 66, which it hit in October 2020.

It is due to begin rising again from May 2026, again, on a gradual basis.

By the end of 2028 the state retirement age will be 67.

It is then due to begin gradually rising again from 67 to 68 between 2044 and 2046.

Under the changes, anyone born after 6 April 1978 (in other words, someone who will celebrate their 45th birthday this year) will have to wait until 2046, when they hit 68, to qualify for the state pension.

State pension bill expected to exceed £100bn


It is worth noting how far that latter change is into the future but some fear the Treasury will seek to accelerate the process.

A government review of the state pension age is due to be published by May this year, with the cost of the state pension due to increase in coming years from the current £100bn per year.

Even bringing forward by one year the point at which the pension age rises to 68 would save £10bn.

Ministers have already indicated they would like to accelerate the process so that the change to 68 is brought forward to between 2037 and 2039 rather than between 2044 and 2046.

Work and Pensions Secretary Mel Stride said bringing forward the age at which the state pension rises to 68 would be fraught with danger


'Generation X' and 'Millennial' votes may be at risk


Moving more rapidly than that would be politically risky because it would alienate 'Generation X' voters, those born between 1965 and 1980, who would be the first to be hit.

It would involve, effectively, ordering them either to postpone the date of their retirement and work for longer than they had anticipated or get by on whatever retirement savings they may have accumulated until they qualify for the state pension - but giving them little time to build the extra savings they may need.

More explosive would be how such a move would further anger 'Millennial' voters, those born between 1980 and 1995, many of whom are already disgruntled at their inability to get on the housing ladder and at having been the first generation saddled with university tuition fees.

These are a cohort the Conservatives desperately need to keep onside if they are to avoid defeat not only at the next general election but the one after that in around 2028 or 2029.

So bringing forward the age at which the state pension rises to 68 would be fraught with danger.

Mel Stride, secretary of state for work and pensions, has already warned that to do so would be "pretty hairy".

It is more likely that the government will, instead, look to introduce a timetable to raise the state pension age again to 69 or even 70 sometime in the latter half of this century.

There have also been suggestions that ministers may give some thought to means testing the state pension as happens, for example, in Australia.

This, though, overlooks that the state pension is effectively means tested already.

French riot police clash with protesters at a demonstration against the French government's pension reform plan


'Baby boomers' already losing out


The generous pensions accumulated by the now-retiring 'Baby Boomer' generation, those born between 1945 and 1965, mean many of them are already seeing their state pension being clawed back in income taxes.

More than half of those currently in receipt of the state pension pay at least 20% of it back in taxes and, in a lot of cases, 40% or even 45%.

Such a measure would also be incredibly unfair on those now in or approaching their final decade in the workplace.

The state pension will have formed a big part of their retirement planning and to deprive them of it at relatively short notice would not give them enough time to accumulate further savings.

It might even have the opposite effect of making them stop saving for retirement, or burn through their existing savings, in order not to miss out on the state pension.

It is why Steve Webb, arguably the best pensions minister this country has had during the last half-century and certainly the most knowledgeable, has described means-testing of state pensions as a "terrible idea".

Accordingly, if it were to be introduced, it would need to be telegraphed many years in advance.

That also applies to any increase in the state pension age - or accelerating the current increase planned.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Man Convicted of Fraud After Booking Over 120 Free Flights Posing as Flight Attendant
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Beata Thunberg Rebrands as Beata Ernman Amidst Sister's Activism Controversy
Hungarian Parliament Approves Citizenship Suspension Law
Prime Minister Orbán Criticizes EU's Ukraine Accession Plans
Hungarian Delicacies Introduced to Japanese Market
Hungary's Industrial Output Rises Amid Battery Sector Slump
President Sulyok Celebrates 15 Years of Hungarian Unity Efforts
Hungary's Szeleczki Shines at World Judo Championships
Visegrád Construction Trends Diverge as Hungary Lags
Hungary Hosts National Quantum Technology Workshop
Hungarian Animation Featured at Annecy Festival
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
UK and EU Reach New Economic Agreement
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
UK and EU Reach Agreement on Gibraltar's Schengen Integration
Israeli Finance Minister Imposes Banking Penalties on Palestinians
U.S. Inflation Rises to 2.4% in May Amid Trade Tensions
Trump's Policies Prompt Decline in Chinese Student Enrollment in U.S.
Global Oceans Near Record Temperatures as CO₂ Levels Climb
Trump Announces U.S.-China Trade Deal Covering Rare Earths
Smuggled U.S. Fuel Funds Mexican Cartels Amid Crackdown
Austrian School Shooting Leaves Nine Dead in Graz
Bezos's Lavish Venice Wedding Sparks Local Protests
Europe Prepares for Historic Lunar Rover Landing
Italian Parents Seek Therapy Amid Lengthy School Holidays
British Fishing Vessel Seized by France Fined €30,000
×