2012 babies won’t retire until they are 77

Children born this year can expect to work 12 years more than the current retirement age, according to a new report.

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Men can currently start claiming their state pension from the age of 65, while women can begin claiming when they are 61 and one month.

But as a result of changes in government policy, the retirement age will increase to 66 by 2020, and will rise to 67 between 2026 and 2028. This is set to climb even further over the following years as life expectancy increases.

Forecasts made by leading accountancy firm PricewaterhouseCoopers (PwC) suggest that the age when 2012 babies will be able to receive their state pension will be 77. They also predict that their children will continue to work until they are 84 before they can claim the state pension.

ìIf their father and grandfather talk of an age when they retired in their 60s, or even 50s, that is not a world that will apply to todayís children,î said Raj Mody, head of pensions at PwC.

ìThey need to accept that their working life will last for five or six decades,î he added.

Children born this year are expected to live until the age of 97, while their children will have a life expectancy of 104.

ìIt is right that we consider changes to the state pension age in light of increasing life expectancy,î said a spokesman for the Department for Work and Pensions.

ìWe have to make sure the state pension remains sustainable and does not place an unfair burden on the future generations.î

Boosting your state pension income will ensure that you enjoy a good standard of living during retirement.

You can compare pensions with Money Expert.

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