£182bn economy boost if workers retire at 75

THE economy could be boosted by over £180billion if retirement age is increased to 75, a study has said.

The increase in the average national life expectancy means taxpayers will face further costs unless people stay in work for longer, claims the report by the Centre for Social Justice (CSJ).

It called for the state pension age to be increased to 70 by 0 8 and to 75 by 035, supported by ‘improvements to workplace support and healthcare’ for older employees. The pension age is already set to increase to 67 by 0 8 and to 68 by 046.

It claimed that, by getting more people aged 55 to 64 to start work, out-of-work benefit costs would be drastically reduced and boost GDP by approximately 9 per cent – roughly £18 billion.

Andy Cook, from the CSJ, said: ‘Working longer has the potential to... increase retirement savings and ensure the full functioning of public services for all.’