The future of the state pension is in jeopardy as the UK faces a “significantly larger pension bill.”

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The future of the state pension is in jeopardy as the UK faces a “significantly larger pension bill.”

THE GOVERNMENT MAY BE FORCED TO MAKE DIFFICULT DECISIONS ABOUT THE STATE PENSION AS THE UNITED KINGDOM’S POPULATION AGEES, according to a new warning issued this week.

According to figures released on Wednesday by the Office of National Statistics (ONS), 13.6 percent of boys and 19 percent of girls born in the United Kingdom in 2020 are expected to live to be at least 100 years old.

In 2045, this is expected to increase to 20.9 percent of boys and 27 percent of girls.

While improvements in life expectancy are slowing, the population is continuing to age, which could have major implications for state pension policy.

In mid-2020, the UK’s pensionable population was estimated to be 11.9 million, with that number expected to rise to 15.2 million by mid-2045.

The working-age population, on the other hand, is expected to grow at a much slower rate, from 42.5 million to 44.6 million.

The old-age-dependency ratio, which shows the number of people of pensionable age per 1,000 working-age people, is expected to rise from 280 in mid-2020 to 341 by mid-2045.

These projections, according to Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, paint a troubling picture for the government as it tries to help more retirees.

“Pensioner power is on the rise,” she said, adding that “more than a fifth of boys and well over a quarter of girls born in 2045 are expected to live to be at least 100.”

“This is great for those of us who get to live longer lives, but it also means fewer people are shouldering the burden of a much larger state pension bill because we’re having fewer children.”

Ms Morrissey stated that the government now faces a “difficult balancing act.”

“We’ve seen the state pension age rise rapidly in recent years to accommodate this,” she explained, “but the situation is no longer so simple.”

“There is growing debate over whether future increases should be implemented as quickly as they were in the past, as longevity does not appear to be increasing at the same rate.”

She went on to say that there could be ramifications for people’s retirement plans as well.

“Living to 100 is a huge positive, but how can it be financed?” Ms Morrissey continued. “If you start a pension at 22 and retire at 65, will you have accumulated enough to last you another 20 years?”

“News from the Brinkwire.”

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