Graduates Could Wait Longer For Pensions

Government ministers are considering introducing a new “two-tier” pension system, which could mean that university graduates would have to wait years longer for their state pensions. The former students would have to work for at least 45 years, until they are almost 70, before receiving the benefits.

The Daily Mail reports –

“Last night critics said the system would be another ‘financial blow’ for young people who are already facing crippling levels of student debt… The proposal is one of a number of options designed to address unfairness in the state pension system – set to be floated on Thursday in a Government-backed report by former CBI boss Sir John Cridland… He has been asked by the Government to devise ways to ensure workers receive a pension for a third of their adult lives, and will publish his final recommendations in March next year… Ministers say current plans to increase the state pension age to 68 would further penalise manual workers and those living in poorer parts of the country, who have a lower life expectancy… But critics said a two-tier system would be galling for English graduates – who will be saddled with average debts of £44,000, according to a report published earlier this year.”