Budget means retirement at 80 for babies born in 2012

Thumb_richard-edgar
George Osborne budget
The Chancellor announced changes to the way retirement ages are calculated in his Budget speech Photo: ITN

So, you're a bright young thing? All that jazz about the Granny tax seems a long way off for you? Well, you're right. And here's something that might make you think.

Yesterday in his budget speech the Chancellor announced changes to the way retirement ages are calculated - how old you have to be before you can collect your state pension. He is introducing an automatic review to make sure retirement keeps pace with the longer lifespans we are enjoying.

So here's the maths, courtesy of John Lawson at Standard Life (and credit to the FT which spotted this originally):

A 37 year old who already might be expecting to work until they are 68 will now have to work until they are 70. You're just over halfway through, chum.

A 21 year old, emerging this summer from university fresh and raring to go will need to keep that steam up until they are 75.

And the babe born in 2012? Dear me, retirement beckons in 2092, once they have reached the ripe age of 80. Giving them another eleven years or so (by my reckoning, extrapolating from ONS tables of life expectancy) to enjoy retirement. Golf or bungee jumping anyone?