2027 the Pension Apocalypse; If You're 50 and Planning for Retirement, Beware Of
Byline: Dan Hyde
BRITAIN'S ticking pensions timebomb will finally explode in 2027, research for Money Mail reveals.
It means a generation of Britons born in the Sixties face a race against time to save for their golden years. Some have just 15 years to create a nest egg big enough. Others will be forced to work into their 70s.
Tom McPhail, of independent financial adviser Hargreaves Lansdown, scrutinised population and saving trends for Money Mail and found a lethal combination of factors will crash in 2027.
The almighty shock will arrive once the 'baby-boomers' born in the Fifties and Sixties stop working, the research shows. It will hammer those now in their late 40s and early 50s -- as well as their grown-up children, who'll be left with a gigantic bill.
Millions born as The Beatles and Rolling Stones took over the charts are being stung by the death of gold-plated final-salary pensions -- and the rise of their riskier, low-paying replacement, 'money purchase' schemes -- and a demographic 'crunch' which means we are all living longer on average, and will be forced to wait until 67 to collect a state pension.
Stinging tax hikes might be required to prop up an underfunded, ageing population, experts warn. But the burden may be too onerous for their children -- already [pounds sterling]1 trillion deep in national debt.
Disaster beckons in 2027, Mr McPhail says: 'Fifteen years from now, the number of people alive over the age of 80 will have increased from three million to 4. …