PensionsMar 1 2016

State pension age to be reviewed by ex-CBI chief

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State pension age to be reviewed by ex-CBI chief

The former director general of the Confederation of British Industry has been appointed to lead the first six-yearly review of the state pension age.

John Cridland will report to the Secretary of State for Work and Pensions by May 2017 to allow the government to consider his recommendations.

But his review will not cover the existing state pension age changes timetable to April 2028 which has been subject to controversy, particularly for its impact on women.

The 2014 Pensions Act requires the state pension age to be reviewed at least once every six years.

Mr Cridland said: “I look forward to meeting many stakeholders, hearing the views of experts and the experience of organisations working in this area to help shape the review.

“I know how important this issue is, and will consider all the evidence to ensure that we have a state pension age fit for the future.”

One of the issues the review will consider will be whether the current system, where a universal state pension age rises with life expectancy, is the best approach in the long term.

State pension age increases equalisation measures for men and women began to take effect in 2010, but chancellor George Osborne later revised the timetable and announced a much quicker schedule than originally planned.

The changes meant the increase to age 65 will happen between 2016 and 2018, and then both sexes’ pension age will increase to 66 by 2020 rather than by 2026 as was originally planned.

The increase of the state pension has meant some women who are weeks away from their former state pension age could find themselves many months away from their new state pension age.

Baroness Altmann, the pensions minister, said: “John Cridland has made an impressive contribution to both government policy and business throughout his career and is well placed to report on this issue.

“As our society changes it is only right that we continue to review state pension ages and take into account the relevant factors to make sure that the state pension is sustainable and affordable for future generations.”

Mr Cridland left the CBI in November after four years leading the organisation and is currently chairman of the board of Transport for the North.

Damian.Fantato@ft.com