State pension age should be 70, PwC says

By Angela Monaghan, Economics Reporter Published: 6:44AM GMT twenty-five February 2010

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State grant age should be 70, PwC says Photo: PHOTOLIBRARY

That would go serve than stream supervision plans, that would see the SPA enlarge to 68 for all by 2046. Today the SPA for men in Britain is 65, and 60 for women, nonetheless the latter is set to climb to 65.

PwC distributed that by fluctuating the SPA to 70 over that time frame, about �9bn a year in today"s income could be shaved off the deficit, or 0.6pc of sum made at home product in 2046.

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Such a move to enlarge the SPA would be homogeneous to avoiding a taxation climb at the time of only underneath 2p on the simple rate of income tax, or only underneath dual commission points on the customary rate of VAT, PwC said.

Government coffers would good from a rebate in state spending, and rising taxation profits as people opted to work longer.

John Hawksworth, head of macroeconomics at PwC, said: "The honeyed mark enjoyed by the economy during the past thirty years as the post-war baby boomers changed by the workforce has the intensity to spin green as longer durations of early early early retirement leave a lasting and costly weight on not as big destiny generations of workers. Either taxes will have to climb or alternative policies need to regulate to understanding with the higher costs of state pensions, health and long-term care, as well as the large debt hangover from the tellurian monetary crisis.

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