The Department for Work and Pensions (DWP) has begun a second review of the State Pension age, which currently resides at 66 for both men and women.
The age is reviewed on a regular basis as people are generally living longer and therefore spending a greater portion of their lives retired.
As reported by the Daily Record, the DWP has previously stated: "When the State Pension was introduced in 1948, a 65-year-old could expect to spend 13.5 years receiving the benefit, around 23% of their adult life".
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However, nowadays it is estimated a 65-year-old can expect to live for 22.8 more years on average — representing 33.6% of their adult lifetime.
New data from the Office for National Statistics (ONS) reveals that the number of people above the State Pension age is expected to increase by a third to 16.9 million by 2042.
The new review will consider whether current rules regarding the retirement age are suitable when considering increased life expectancy.
The State Pension age is currently 66, but two increases are currently laid out in legislation: a gradual rise to 67 for those born on or after April 5, 1960, and a gradual rise to 68 between 2044 and 2046 for those born on or after April 5, 1977
The last State Pension age review was carried out in 2017, when it was decided that the following review should determine whether the age increase to 68 should be brought forward to 2037-39.
The DWP stated: “As the number of people over State Pension age increases, due to a growing population and people on average living longer, the government needs to make sure that decisions on how to manage its costs are robust, fair and transparent for taxpayers now and in the future.
“It must also ensure that as the population becomes older, the State Pension continues to provide the foundation for retirement planning and financial security.”
What will the State Pension age review consider?
During the review, a large range of evidence will be considered, such as:
- 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
Under the Pensions Act 2014, the UK Government is required to regularly review State Pension age, and in accordance with law, this latest review must be published by May 7, 2023.
With all these proposed changes it can be difficult for people to be aware of exactly when they will qualify for Sate Pension and be able to retire.
That is why the UK Government has provided a free and simple to use online calculator which gives an exact date for State Pension qualification, just by entering your gender and date of birth.
The tool provides information on when the user will:
Reach State Pension age
Qualify for Pension Credit
Be eligible for free bus travel - which is 60-years-old for everyone in Scotland
How to use the Pension Age tool
The tool allows you to calculate your State Pension and bus pass age.
Once the State Pension age option is selected, input your date of birth and gender.
The final screen reveals the exact date that you will reach State Pension age.
It’s also possible from this screen to get information on when you could become eligible for Pension Credit, get a pension forecast or receive other State Pension information.
Check your State Pension age on the GOV.UK website here.
