The Department for Work and Pensions (DWP) has confirmed that the outcome of the review of the State Pension age will be published by May 2023. The review will consider a wide range of evidence, including findings from two independent reports, to assess whether the rules about State Pension age remain “appropriate”.
Earlier this year, DWP launched the second review of the State Pension age, which is now 66 for both men and women across the UK. State Pension age is regularly reviewed to make sure that it is affordable and fair as people are living longer and spending a greater proportion of their adult life in retirement than in the past.
The UK Government has already confirmed that it is committed to implementing the Triple Lock in the usual way for 2023/24 and the remainder of the Parliament. This will ensure that State Pensions payments in line with whichever is highest out of earnings, inflation or 2.5%.
The DWP has previously explained the reason for the review is because "when the State Pension was introduced in 1948, a 65-year-old could expect to spend 13.5 years receiving the benefit, around 23 per cent of their adult life".
However, this has been increasing ever since and it is now estimated that a 65-year-old can expect to live for another 22.8 years, or 33.6 per cent of their adult life in retirement.
The latest projections from the Office for National Statistics (ONS) show that the number of people over State Pension age in the UK is expected to grow by a third to 16.9 million in 2042.
The second review will consider whether the rules around pensionable age are appropriate, based on the latest life expectancy data and other evidence.
Two further increases are currently set out in legislation, these are:
- a gradual rise to 67 for those born on or after April 5, 1960
- a gradual rise to 68 between 2044 and 2046 for those born on or after April 5, 1977
The first review of State Pension age was undertaken in 2017 and concluded that the next review should consider whether the increase to age 68 should be brought forward to 2037-39 before tabling any changes to legislation.
Last week, in a written response to SNP MP, Owen Thompson, regarding the State Pension age and the Triple Lock, Pensions Minister, Alex Burghart, said: “Work is underway on the second Government Review of State Pension age which, under the Pensions Act 2014, must be published by May 2023.
“This Review will consider a wide range of evidence, including findings from two independent reports, to assess whether the rules about State Pension age remain appropriate.
“The [UK] Government has committed to implementing the Triple Lock in the usual way for 2023/24 and the remainder of the Parliament.”
What will the State Pension age review consider?
The review will consider a wide range of evidence, including:
- Examining the implications of the latest life expectancy data
- Providing a balanced assessment of the costs of an ageing population and future State Pension expenditure
- Consider labour market changes and people’s ability and opportunities to work over State Pension age
- Developing options for setting the legislative timetable for State Pension age that are transparent and fair
The Pensions Act 2014 requires the UK Government to regularly review State Pension age, and in accordance with law, this latest review must be published by May 7, 2023.
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