State pension age hikes could be accelerated pending ongoing review | Personal Finance | Finance
Changes to the state pension age can have a significant impact on the retirement plans of millions of British people. An ongoing Government review could mean upcoming increases to the state pension age are brought forward.
During the first review, it was decided that the next review should consider whether to bring the increase to age 68 forward to between 2037 and 2039.
If this transpires, it would mean millions more people waiting an extra year for their state pension.
The outcome of the review should be unveiled next year, as the review must be published by May 7, 2023.
The Government is required to review the state pension age regularly according to the Pensions Act 2014.
The first state pension age review took place in 2017.
Increases in the state pension age are designed to reflect changes in the life expectancy of British people.
The Government states on its website that as the population becomes older, it must ensure the state pension “continues to provide the foundation for retirement planning and financial security”.
The review will consider differences across countries and regions within the UK, including Northern Ireland.
The review will also include:
- Examining the implications of the latest life expectancy data
- Providing a balanced assessment of the costs of an ageing population and future state pension expenditure
- Considering labour market changes and people’s ability and opportunities to work over state pension age
- Developing options for setting the legislative timetable for state pension age that are transparent and fair.
