UK - Aon Consulting says the UK government will need to raise the state pension age to 70 to maintain state benefits.

"For state benefits to remain as affordable as they are today, the Government will need to increase the state pension age to 70 by 2030," Aon said, citing forecasts from the Government Actuary's Department.

It added: "However, as average life expectancy increases, accompanying figures show that by delaying retirement by five years (typically from 65 to 70) a person's standard of living in retirement can be improved significantly."

It cited GAD’s 2002 population forecasts of the ratio of the working age population compared to those over the State Pension Age was 3.88. “This ratio is projected to decline as the population ages, to under 3.0 by 2022 and under 2.5 by 2031.”

It said: “Aon's analysis predicts that the ratio in 2031 would return to similar levels today (i.e. just under four) by increasing the retirement age by five years to 70.”

It added: “For members of company pensions the decision to delay their retirement can also be advantageous. By delaying retirement by only a few years, employees can also see dramatic increases in the size of their pensions.”

Aon consultant Paul McGlone said: "The main point is if you can work longer then you will earn more and have a higher standard of living in retirement.

“A member deferring retirement from a company final salary scheme by five years will typically see their pension increase by up to 50% as a result.”