The Pensions Policy Institute, a UK think tank, recently published a study in which they conclude that the pension age in the UK will need to be raised significantly in order to keep government costs at the level they were in 1981. The study explored several different scenarios; virtually every one required an increase of some kind. Deadlines for such increases vary, depending on the amount of the raise and on the sex of the pensioner. This news is sure to be met with some skepticism and concern by the many people who are already worried about the dismal state of the world economy. The longer that people must work, the less chance they will have to enjoy their pensions. 

The government has already laid plans to raise the pension age for women in the UK to 65 by the year 2020. The Labour government wanted it raised to 66 by the year 2024, with an eventual cap at 68. However, the new government has different ideas. It would like to see the changes made earlier; ideally, by the year 2016. According to the Pensions Policy Institute, though, people would need at least 10 years of notice, on average, in order to make the necessary financial adjustments. After all, quick cash services simply won't be enough for someone to live off of after the leave the workforce.

The study also examined the various costs to the government that pension ages have caused. For instance, in order to bring government costs back to the level that they were at in 1981, the pension age would need to be raised to 72 by the year 2030. Understandably, most people would agree that this is a dramatic and unfeasible concept. In order to maintain the same cost that existed in 2000, the pension age would have to be raised to 68 by the year 2030. At this point, it is unclear which direction the government will go in. For people who are currently in their 30s and 40s, though, the decision is going to have a major impact on their future; they are surely waiting with bated breath.