LONDON – Immigration cuts as a result of Brexit will push up the UK’s retirement age, according to the head of a leading business group, meaning Brits will be forced to work for a lot longer than they do now.

The Confederation of British Industry (CBI) head John Cridland made the prediction to an audience at an International Longevity Centre conference, according to The Telegraph.

Cridland is currently writing a report using Office for Budget Responsibility forecast data and this will be used by the UK government to make a decision on pension changes in May. Cridland’s report will be published in April.

Cridland’s calculations show that a “hard Brexit” – where immigration numbers are massively reduced – could force people to work into their mid-70s and also suggests that the amount people will get from pensions is now “unpredictable” because of “life expectancy, fertility, and post-Brexit migration policies.“

Prime Minister Theresa May signalled Britain will pursue a “hard Brexit” – leaving the EU without access to the Single Market in exchange for full control over immigration – in her speech in London on January 17.

Since then, a number of companies and banks warned that they are likely to move jobs out of London to mitigate any shocks to their businesses. For example, Goldman Sachs is considering cutting its staffing numbers in London by up to 50% due to Brexit fears.

This loss of jobs, combined with fewer EU migrants working low paid jobs, means Britain is likely to face a fall in the number of working-age people whose taxes fund retirees' pensions. This would likely lead to a shortfall in funding, which the government could plug by pushing up the retirement age.

The Chartered Institute of Personnel and Development said in a survey on Monday that more than a quarter of employers in Britain say staff members from other EU countries have considered leaving their firms or the country in 2017. In turn, this could cause a major skills shortage in the UK, it said.

At the same conference as Cridland, Francois Barker, a director at law firm Eversheds Sutherland said: "All the signs are that Brexit is likely to reduce the number of people of working age coming into the UK from the EU and, unless this shortfall is made up elsewhere, the UK's old-age dependency ratio looks set to rise even further than currently projected.

"This may force the Government to increase state pension age, reduce the rate of the state pension or raise taxes."