London – The British government said Wednesday that it will consider raising the retirement age to as high as 69, as recommended by a panel commissioned to avert a looming funding crisis in the state pension system as people live longer and have fewer children.
The Pensions Commission, appointed by Prime Minister Tony Blair in 2002, also said the state pension should be increased and proposed creating a National Pension Savings System in which every worker would be enrolled automatically.
Work and Pensions Secretary John Hutton agreed reform is needed and said “the broad framework” outlined by the commission would be used as the basis for a public debate in the coming months before the government decides how to proceed.
Funding state pension systems is becoming a problem for many industrial nations. Italy has raised the age for a full pension to 60 from 57, Belgium is boosting the earliest retirement age to 60 from 58, and German lawmakers have agreed the retirement age should rise to 67 from 65 between 2012 and 2035.
The U.S. already is gradually raising the age toward 67.
The commission’s report quickly drew criticism from Britain’s biggest labor confederation, which objected to a higher retirement age, and from a leading industry group, which said matching employer contributions for the proposed savings plan would burden small businesses.
But Hutton said changes have to be made. He noted there will be 50 percent more pensioners by 2050.
