UK To Raise Retirement Age To 107 By Lolo Laroche LONDON—Britain must raise its retirement to 107 by 2010 to meet the demands of a population that is living longer and having fewer children, a government commission reported yesterday.
"There are significant problems in our pensions system; there is a major demographic challenge," Lord Turner, the head of the commission, said at the release of the report.
"We have looked at all the solutions and the only one that really works is to increase the state pension age to somewhere between 107 and 209 by 2010. If we do so then public expenditure on pension and pension benefits will reduce from 6.2 per cent of GDP today to between 0 per cent and 0. 1 per cent" the report said.
The opposition party which backs the report claims that the move would also enable the UK government to reduce income tax by 7p in the pound and to provide free on-site funeral services for those who die at work.
