State pension alert as DWP may speed up age increases – will you be affected? | Personal Finance | Finance
State pension payments are vital for many retired people, but delays are on the horizon. The age of state pension entitlement has varied over time, but currently sits at 66 for both men and women.
Under the Pension Act of 2014, there is a statutory requirement to review the rules about pensionable ages every six years.
The idea is that the cost of increasing longevity is shared fairly between generations.
Reviews also provide more clarity about how the state pension age will change in the future.
While two age increases are already laid out in legislation, it is the speed at which these changes are implemented which is up for debate.
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If it went ahead, it could mean a seven year shift when compared to the current plans.
The Government explained: “As the number of people over state pension age increases, due to a growing population and people on average living longer, the Government needs to make sure that decisions on how to manage its costs are, robust, fair and transparent for taxpayers now and in the future.
“It must also ensure that as the population becomes older, the state pension continues to provide the foundation for retirement planning and financial security.”
The review is set to cover and consider a wide range of evidence.
It will look at life expectancy data as well as expenditure and labour market changes.
The ability and opportunity to work beyond state pension age will also be taken into account.
The Government has promised this review will consider differences across countries ad regions.
It will also consider the effects for individuals with different characteristics and opportunities, including those at risk of disadvantage.
Recent analysis, however, has shown life expectancy is collapsing, even before the pandemic occurred.
Sir Steve Webb, partner at Lane Clark Peacock, has said this means the Government’s plans for rapid increases in state pension age have been “blown out of the water”.
He added: “Even before the pandemic hit, the improvements in life expectancy which we had seen over the last century had almost ground to a halt.
“But the schedule for state pension age increases has not caught up with this new world.
“This analysis shows that current plans to increase the state pension age to 67 by 2028 need to be revisited as a matter of urgency.
“Pension ages for men and women reached 66 only last year, and there is now no case for yet another increase so soon”.
Express.co.uk has contacted the DWP asking for comment.
