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George Osborne brings bad pensions news for under-50s - Autumn Statement as it happened

Young people may have to work until their 70s before receiving a state pension, Chancellor George Osborne announced today.

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In the biggest change in a century, the age at which a person can claim the state pension is to be linked directly to life expectancy.

The pensions reform will cut the bill to the taxpayer for retirement by an estimated £500 billion over a 50-year period.

Anyone currently in their 40s or younger would be affected by the move, which will see the state pension age rise as the average person lives longer. Experts predict a girl born today, with a one-in-2.5 chance of living to 100, may not get her state pension until she is 77.

Catch up with George Osborne's Autumn Statement as it happened and leave your thoughts on the announcements in the comments section

But there was good news for businesses with discounts of up to £1,000 offered on business rates for small restaurants, cafes and shops and rate relief for those who take on empty town centre shops.

Mr Osborne also announced plans to exempt employers from paying national insurance contributions for young workers in a bid to increase the number in work.

Outlining his plans in his annual autumn statement, the Chancellor said that there were 'no quick fixes' for the 'broken' public finances and that recent improvements in the economy must not be 'squandered'.

"I am proud to be in a government that has introduced a triple lock that ensures a fair and generous increase in the state pension each year", Mr Osborne said. "From next April it will rise by a further £2.95 a week."

  • Poll: Is 70 too old to retire?

He said the country needed a government 'that lives within its means and a country that pays its way in the world'.

On the planned changes to National Insurance he said: "The cost of employing a young person on £12,000 will fall by £500."

Mr Osborne said: "There are no quick fixes. We have stuck to our guns, worked through the plan and in the face of opposition from those who got Britain into this mess in the first place.

"The hard truth is that the job is not yet done. The deficit is down but it is still far too high and today we take more difficult decisions.

"The hard work of the British people is paying off and we will not squander their efforts."

But he claimed that employment is at an 'all time high' and the Office for Budget Responsibilty had revised its forecast for the future up.

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