The Government has published its final review on the State Pension Age-
'The Government intends to follow the recommendation John Cridland made in his independent review to increase the State Pension age from 67 to 68 in 2037– 39, bringing it forward by seven years from its current legislated date of 2044–46.'
'...between now and 2036/37, annual State Pension spending is set to rise by an extra 1% of GDP, from 5.2% to 6.2%. If that same rise in spending was faced today, this would be equivalent to a rise in taxation of £725 per household per year.'.
'...Because life expectancy is increasing, people affected by this rise will be spending longer on average in receipt of the State Pension than people have spent over the age of 65 over the last 25 years, and on average will receive more in State Pension over their retirement than previous generations.'
The Pensions Act 2014 introduced a regular and structured method for considering future changes to the State Pension age in light of changes in life expectancy.
This is the first government review of State Pension. Any future changes to State Pension age would have to be approved by Parliament in legislation.
The DWP offers a service - check your State Pension online at any time for a forecast of how much you could get. The service will also con rm when you will reach State Pension age, under the law as it stands.
Already set in place of course are changes for women to their retirement age- April 2010- November 2018 sees the retirement age move from 60 to 65.
From November 2018- November 2020 women's and men's retirement age will move from 65 to 66, and from 2026-2028 to 67.
Book now for our updated Benefits for Older People course course.