Government Raises State Pension Age
However, those born on or before 5 April 1970 will not be affected by the change.
The proposal follows recommendations made by John Cridland CBE in March 2017.
Cridland’s review highlighted that by 2036/37, annual spending on the state pension would have increased by 1% of GPD on 2016/17.
To translate this into figures, this would equate to around £20 billion or a tax rise of £725 per household.
David Gauke, secretary of state for work and pensions, said:
“As life expectancy continues to rise and the number of people in receipt of state pension increases, we need to ensure we have a fair and sustainable system that is reflective of modern life and protected for future generations.
“Combined with our pension reforms that are helping more people than ever save into a private pension and reducing pensioner poverty to a near record low, these changes will give people the certainty they need to plan ahead for retirement.”
