Retirement at 66 within five years - papers

The pension age could be raised to 66 within five years, far sooner than expected, as life expectancy increases rapidly.

Statistics published today paint a stark picture of the crisis facing the economy. They show that plans to stage incremental rises in the retirement age over three decades are no longer sustainable, the Daily Telegraph reports.

The figures, produced by the Office for National Statistics, show the current ratio of four working adults for every pensioner will fall to three within a decade and two by 2040.

At this rate, by 2030 there will be 5.6 million more people over the age of 65 than today.

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US banks braced for slump in profits

US banks with Wall Street operations are bracing for a slump in trading profits this year after the third quarter got off to a poor start, with global economic uncertainty and Europe's sovereign debt woes leading to a slowdown in market activity in July, the FT reports.

Executives said volumes and profitability last month were even lower than during the sluggish second quarter, with hedge funds particularly reluctant to take big bets on equities and debt.

Trading activity picked up a little in recent days after the release of European banks' "stress tests". However, deepening fears of a permanent end to the trading boom that supported financial groups' earnings after the financial crisis are prompting some banks to consider laying off traders.

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Japan's PM says economy may need more stimulus spending

Japan's prime minister has suggested the country's economy may need additional stimulus spending according to the BBC.

Naoto Kan said that while the economy was still growing, there was concern about the level of unemployment and the health of the global economy.

The Japanese economy expanded at an annualised rate of 5% between January and March, but economists say the rate of growth has since slowed.

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Public sector pensions 'embargo' delays divorcing couples

Government moves to link public sector pensions to the CPI mean projected pension values cannot be calculated, reports the Guardian.

Thousands of public sector workers are being denied information about the value of their pensions by the government while it implements changes laid out in the recent budget.

The problem will primarily affect workers who are in the process of getting a divorce. When couples separate they finalise their financial arrangements through a consent order, a legally-binding agreement reached between spouses based on the value of their current assets.

If there is a public sector pension involved the only way of getting a snapshot of its value is to order a cash equivalent transfer value (CETV), which gives an instant value at today's prices.

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