United Kingdom state pension age increase to 68 brought forward

Ivan Schwartz
July 19, 2017

Workers born in the 1970s will have to work longer to get the state pension after the government announced it was bringing forward a planned rise in the pension age by seven years.

David Gauke said the pension age will rise to 68 over two years from 2037, seven years earlier than planned.

Adopting the recommendations of the Cridland review into state pension increases, the Government has confirmed that the state pension age will rise from 67 to 68 from 2037.

It also cites that life expectancy has improved by around eight years for women and nine years for men since 1951, with estimates suggesting these could improve a little over one year further per decade.

Mr Gauke said: "As life expectancy continues to rise and the number of people in receipt of State Pension increases, we need to ensure that we have a fair and sustainable system that is reflective of modern life and protected for future generations".

The Government added in a press release that "those affected by this proposed timetable will on average still receive more state pension over their lifetime than generations before them".

In 2014, the government committed to reviewing the state pension age once every parliament.

This is the first government review of the state pension. The "universal" State Pension age we now operate under means that retirement age applies equally to everyone.

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"Labour has already indicated it will oppose such reform and, with a wafer thin majority, only a few rebellious MPs would leave the plans on a political knife edge".

In response to this announcement, Labour's shadow work and pensions secretary Debbie Abrahams said the opposition party does not support the government's decision.

The latest official statistics say that the number of people over the state pension age in the United Kingdom is expected to balloon by a third between 2017 and 2042 - from 12.4 million to 16.9 million.

"The latest research shows that working people in some places will now fall ill ten years before receiving their state pension under the Tories' new plan - and just days ago, evidence emerged showing that increases in life expectancy are stalling", Ms Abrahams said.

"Since 1948 the state pension has been an important part of society, providing financial security to all in later life". People are living longer, and spending a larger proportion of their adult life in retirement than in the past.

Keeping the state pension age at 66 would cost over £250bn more than the government's preferred timetable by 2045 to 2046.

This has been increasing ever since.

Other reports by GizPress

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