A review of the State Pension Age will analyse costs and consider the rules around pensionable ages but what are the implications of any changes?
At the end of 2021, the government launched a second review of the State Pension Age (SPA) with the aims of analysing the cost of operating the State Pension and to consider whether the rules around pensionable age are appropriate.
Currently, the SPA is 66 for both men and women. Legislation already allows for a gradual rise in the SPA to age 67 for those born in or after April 1960, followed by a gradual rise to age 68 between 2044 and 2046 for those born in or after April 1977.
As part of the second review, the Department for Work and Pensions (DWP) will consider whether it should bring forward the increase in the SPA to age 68, to 2037-39.
The number of people over SPA is increasing, because of a growing population and increases in average life expectancy.
Decisions made by the DWP on how to manage the costs of the State Pension must therefore provide fairness to both taxpayers and pensioners, as well as continuing to provide a foundation for retirement planning and financial security.
Our briefing note considers the implications of these issues, looking at the latest life expectancy and population projections. And it considers whether an increase in the SPA should be brought forward or perhaps postponed.
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