Revised retirement age is unable to solve pension problem

The decision of the coalition government to change the previous retirement age of 65 to higher was a very right and productive decision but that is not enough to tackle with the pension problem.

As per the experts, this decision of allowing workers to work longer will not solve the issue of pension both for companies and individuals. This would produce a worse result in deficits. In total the 200 largest companies of UK have seen a shortfall in their pensions of 100 billion euros as per the Aon Consulting.

This economic downturn could make the deficit worse because of the technical factors related to the market in the debt crisis. According to a study by CBI most of the companies are not happy with the pension rules of the coalition government.

Almost 40% of the companies have claimed that the pensions fund were drained away which would have been used in other business investment. Allowing people to work till their late sixties is a very good move as the older workers rise productivity in the economy.

The other aspect of this new retirement law is the unemployment.