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Rise in state pension age from 67 to 68 brought forward

Rise in state pension age from 67 to 68 brought forward

The state pension age is to rise to 68 from 2037, which is seven years earlier than planned and will affect six people now in their mid-40s.

The government argues the increase is the "responsible and fair course of acton" as life expectancy had improved. But from 2010, the retirement age for women was bought into line with men. People born between 1970 and 1978 will see the pension age rise to 68 depending on their date of birth, and people born from April 1978 will get their pension when they reach 68.

The Department for Work and Pensions (DWP) said it would save the equivalent of £400 a year per household.

When the modern state pension was introduced in 1948, a 65-year-old could expect to live a 13-and-a-half years, or 23 per cent of their adult life.

'There is a balance to be struck between funding of the state pension in years to come whilst also ensuring fairness for future generations of taxpayers'. The new timetable reduces that figure to 6.1%. Delivering on these efforts will be vital to reducing the negative consequences of faster state pension age rises.

The Shadow Work and Pension Secretary, Debbie Abrahams referred to the announcement as, "an astonishing continuation of austerity".

Tom McPhail, the head of policy at Hargreaves Lansdown, said people will have time to plan. "Most pensioners will now face what has been described as a "toxic cocktail" of ill health throughout their whole retirement".

Shadow Work and Pensions Secretary Debbie Abrahams said: "We can not allow this Government to push people to work longer and longer to pay for its failed austerity agenda". This amounts to a saving of £74 billion by 2045/46 compared with the previous proposals.

The rise in the pension age had been planned to be brought in from 2044, but the Government said on Wednesday it would be phased in between 2037 and 2039 - seven years earlier than planned.

Any future changes to state pension age would have to be approved by Parliament in legislation.

The median life expectancy for a male in the United Kingdom is 86, and 89 for a female. "It is yet another chapter in the Tory Government's hit on people already struggling due to this Government's austerity-driven agenda".

Other issues concerning the state pension remain unresolved, however, and establishing a sustainable system for increasing the payment must be addressed sooner or later.

Find out more: How much state pension will I get? "Without this decision people of working age would have faced a heavy tax burden".

It's understandable for us to base our expectations of life in retirement on the experiences of the older people we know, particularly our parents and grandparents, but this is likely to give an overly pessimistic impression. Individuals who can work flexibly in later life can achieve higher lifetime incomes, can boost overall economic activity, and could have more money to spend in their advanced older age.

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