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Government considers raising state pension age

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The Government has launched a review of the state pension age and will consider bringing forward the rise in the age at which people become eligible for the state pension to 68, from the current entitlement age of 66, to 2037-39. 

Currently, a gradual rise to 68 is planned between 2044 and 2046. The review will conclude in May 2023. A rise to 68 from 2037 would affect people born from the early 1970s onwards, rather than those born since the late 1970s, potentially pushing full retirement back for millions more people.

The DWP said the review will: examine the implications of the latest life expectancy data; provide a balanced assessment of the costs of an ageing population and future state pension expenditure; consider labour market changes and people’s ability and opportunities to work over state pension age; and develop options for setting the legislative timetable for State Pension age that are transparent and fair. 

It added the review would consider regional inequalities as well as “the effects for individuals with different characteristics and opportunities”.

Posted by MMB Finance Swindon on 15 December 2021