The State Pension age is regularly reviewed to make sure that the State Pension is affordable and fair. People are living longer, and spending a larger proportion of their adult life in retirement than in the past.
When the State Pension was introduced in 1948, a 65-year-old could expect to spend 13.5 years in receipt of it – around 23% of their adult life. This has been increasing ever since. In 2017, a 65-year-old can now expect to live for another 22.8 years, or 33.6% of their adult life.
Latest projections from the Office for National Statistics show that the number of people over State Pension age in the UK is expected to grow by a third between 2017 and 2042, from 12.4 million in 2017 to 16.9 million in 2042.
The proposals Under the current law, the State Pension age is due to increase to 68 between 2044 and 2046. Following a recent review, the government has announced plans to bring this timetable forward. The State Pension age would therefore increase to 68 between 2037 and 2039.
Your date of birth
How the proposals affect you
On or before 5 April 1970 No change Between 6 April 1970 and 5 April 1978
Your State Pension age is currently 67. It would increase to between 67 years and 1 month, and 68 years, depending on your date of birth
After 6 April 1978
No change. Your State Pension age remains 68
These proposed changes would have to be approved by Parliament before they are agreed.
Those affected by this proposed timetable will on average continue to spend longer in receipt of the State Pension than anyone reaching State Pension age in the last 25 years.
The proposed changes were informed by the independent recommendations made by John Cridland CBE in March 2017.
Read the State Pension age review final report .
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Centre for Ageing Better responds to plans to increase the State Pension age 24 July 2017
The raising of the State Pension age will mean people who are in their mid-40s now, and generations after them, will have to work for an extra year until they are 68.
Dr Anna Dixon, Chief Executive of the Centre for Ageing Better , commented on the Government’s proposal :
“If people are to work for longer, urgent action is needed from Government and employers to make the labour market fit for purpose.
Currently older workers are not properly supported at work, and there is a rapid fall in employment rates over the age of 50, with a marked increase in perceived job insecurity. By the year before people reach State Pension age, over half are not working and there are one million people aged 50 to 64 who would like to work but are not, most having left due to poor health, redundancy, or caring responsibilities. Employers must introduce flexible working arrangements that allow people to balance these pressures. Inequalities in life expectancy and healthy life expectancy mean that many people will find it impossible to work until State Pension Age, and without additional support or mitigating policies from Government will face financial difficulties and hardship in later years. More radical benefit reform should be considered for those with long-term health issues and disabilities. It is essential too that as our workforce grows older, the issue of ageism and discrimination in the workplace is tackled, including making sure older workers are treated fairly, their contributions recognised, and that they are offered opportunities for development and progression.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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