Pensions 

Millions to lose under state pension age change

Millions to lose under state pension age change

The change to the state pension age will leave 7.6 million people £10,000 worse off, according to House of Commons Library analysis.

Last week, (19 July) the government announced it has accepted the recommendation in the Cridland Review that the state pension age increase should be brought forward to 68 between 2037 and 2039.

Raising the state pension age to 68 by 2039 will impact men and women aged between 39 and 47, who will have to wait a year longer before they can access their state pension entitlement.

The move has been controversial, particularly in light of longevity findings.

Evidence just days earlier from Professor Sir Michael Marmot, life expectancy expert, described how a century-long rise in life expectancy was “pretty close to having ground to a halt,” with 2010 the turning point - when the government began its austerity programme.

And Public Health England has just published data showing significant disparities in healthy life expectancy, showing how on average a man living in Nottingham would only be expected to live in good health until the age of 57.

Debbie Abrahams MP, Labour’s shadow work and pensions secretary, said: “Labour want to take a measured approach, leaving the state pension age at 66 while we review the evidence emerging around life expectancy and healthy life expectancy, considering how we can best protect those doing demanding jobs and the contributions they have already made.”

In a statement announcing the changes in the House of Common, the secretary of state for work and pensions, David Gauke MP, said a balance had to be found between funding the state pension and being fair on future generations of taxpayers. 

He told MPs: "As the Cridland Review makes clear, the increases in life expectancy are to be celebrated, and I want to make clear that even the timetable for the rise that I'm announcing today (19 July), future pensioners can still expect on average more than 22 years in receipt of the state pension.

"But increasing longevity also presents challenges to the government.

"There is a balance to be struck between funding of the state pension in years to come whilst also ensuring fairness for future generations of taxpayers."