State Pension Age Consultation Begins

The government is reviewing the state pension age with the aim of ensuring it remains affordable and fair to everyone.

The state pension age is currently between 60 and 65 for women and 65 for men. It is due to increase gradually until it reaches 68 for both men and women between 2044 and 2046.

The consultation looks into 3 areas:

Affordability

Looking at the ratio of pensioners to working age people is predicted to increase over time. The consultations will also review state pension spending as a proportion of GDP. 

Fairness

Reviewing different generations of pensioners and the gap between working age and pension income.

Fuller Working Lives 

Giving people the opportunity to work longer and mitigating against early retirement.

John Cridland CBE, the state pension age independent reviewer, said:

“The future of the state pension age is a hugely important issue for this country. It must be fair and sustainable, and reflect changes in society.”

Industry Reaction

Reaction to the consultation has generally been positive.

Yvonne Braun, director of policy of long term savings and protection at the Association of Brinish Insurers, said:

“We agree with the need for the state pension age to be communicated clearly so that people can plan effectively for their future, and providers will do their part to support this.”

Paul Green, director of communications at Saga, said:

“Changes to the state pension age need to be driven by proper planning and not short term financial fixes.

“We are particularly pleased to see the emphasis ensuring that any changes to the state pension age are communicated effectively.” 

For any help or advice with financial planning talk to RPD