PensionsMay 12 2023

State pension age will not rise to 68 until 2041

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State pension age will not rise to 68 until 2041

The state pension age will not be raised to 68 until between 2041 and 2043, the work and pensions secretary has said.

Speaking in parliament, Mel Stride said a review into the state pension age recommended the rise from 66 to 67 will happen between 2026 and 2028.

“It has been in legislation since 2014 and will continue to give certainty to those planning their retirement,” he said.

Stride added that the report recommended that the rise from 67 to 68 should take place between 2041 and 2043, four years later than the period proposed by the original review in 2017.

The MP noted that certain “significant external challenges”, namely the war in Ukraine and Covid-19 pandemic, may have had an impact on life expectancy, but it is too early to make a decision based on this.

“Given the level of uncertainty about the data on life expectancy, labour markets and the public finances, and the significance of these decisions on the lives of millions of people, I am mindful that a different decision might be more appropriate once those factors are clearer.”

Therefore, Stride said he has planned for a further review to be undertaken within two years of the next Parliament. 

“The current rules for the rise from 67 to 68 therefore remain appropriate and the government does not intend to change the existing legislation prior to the conclusion of the next review.

“The government remains committed to the principle of 10 years’ notice of changes to state pension age and will ensure that any legislation can be brought forward in a timely manner.”

Stride also indicated the government stands by the triple lock for pensions. 

Steven Cameron, pensions director at Aegon, said the two issues are both “hugely impactful” on the future affordability of the state pension.

“The more generous the year on year pension increases are, the greater the need to accelerate increases in state pension age. But adapting the triple lock to avoid the risk of inflation busting increases could reduce pressures to increase the state pension age as quickly. 

“These are huge issues of great interest to the voting public, both of retirement and working age, and each political party should set out ‘joined up’ plans in their Election Manifestos for the future of the state pension.”