Updated 1:44am 18 May 2012

One in three will die before retiring

One in three men in the North will not live to enjoy their pensions if the Government increases the retirement age to 70.

Workers across the UK are being encouraged to retire five years later to save Britain from a pension crisis.

But figures released yesterday reveal that if this were to happen, more than one in four people in the North would die before they receive their pension.

And because men do not live as long as women, even more men would miss out - with one in three dying before they reached 70.

TUC general secretary Brendan Barber said: "We are being told we can solve the pensions crisis if we all work longer.

"But these figures show that many will have to work until they literally drop if the retirement age goes up to 70."

The biggest losers in the region would be Blyth Valley, Middlesbrough and Hartlepool, where two out of five men die before they are 70.

Mr Barber said: "It is hardly surprising that the biggest losers in the North live in poorer areas. It is simply not an option for many manual workers to carry on working until they are 70."

According to the Government's population projection figures, there will be considerably fewer people of a working age to fund the state pension for over 65s by 2031.

This leaves the Government with the choice of raising billions to keep the state pension at current levels or increasing the retirement age.

The pension crisis is already worse in European countries such as Spain, France, Germany and Italy, where increased life expectancy and falls in economic output are putting a burden on an over-stretched pension system.

Due to the strong financial incentives to retire at 70, people in Iceland continue to work the longest but it is also the country with the highest male life expectancy in the world.

Mr Barber said: "The only real solution to the pensions crisis is a good state pension linked to rising prosperity, on top of which people should build extra with compulsory contributions from employers."

The Government has already announced that it will pay lump sums of up to £30,000 to people who delay taking their state pension until age 70. A spokeswoman for the Department for work and pensions, said: "People are living longer and need to start thinking about working longer and saving more."

The TUC is organising a national Pay Up For Pensions demonstration calling for a new and fair pensions settlement in London on June 19.

The Journal: Today's Voice of the North

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