The government has announced its decision to not immediately raise the pension age to 68.
However, instead of scrapping the pension age in the face of delayed rises in life expectancy, the work and pensions secretary, Mel Stride, said a review will take place in the future where a decision will then be made. It is understood that a decision will be made in 2026 after the general election.
The government is required by law to review any planned changes to the pension age system every six years. News that the pension age could still rise in the near future has struck a chord with many experts and members of the public.
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Reacting to the news, Andy Barr, CEO and Personal Finance Expert at Alert, said: “Following the Spring Budget, in which the Chancellor, Jeremy Hunt, suggested bringing the state pension age increase forward to between 2034 and 2036, prospective pensioners will be pleased to hear that this’ll now likely be delayed to 2044. On top of this, the removal of the cap on Pension Lifetime Allowance – which has been frozen since 2020 – has provided small signs of relief for current pensioners.
“Bringing forward the age increase could leave millions of low-income workers, who’re set to retire in the near future, in poverty. It’s important that people are made aware about any increase in pension age as early as possible, to allow those affected to financially plan accordingly.”
Sir Steve Webb, a former pensions minister who is now a partner at consultants LCP said: "It is welcome that the Government has taken account of the big slowdown in life expectancies in recent years and has held off any further increases in state pension ages for now. But there is a sting in the tail in the analysis which the government has published today.
“If it adopts the idea of placing a cap on the share of national income spent on pensions, this would mean a rapid increase in pension ages, including a rise to 69 before the end of the 2040s. This would be a draconian shift in policy which would be likely to mean today’s younger workers facing a pension age of 70 or above.”
Members of the public on social media similarly raised their concerns about raising the pension age which has been compounded by a downward trajectory of life expectancy forecasts.
Writing on Twitter, user Robinson said: "Raising the pension age to 68 is unjustifiable and puts the retirement security of the UK's citizens at risk. This move disproportionately affects those in manual labour jobs who are unable to work until that age. It's time to prioritize the needs of our aging population."
Another user, Laura, wrote: "I def think the pension age should be different for any people that have to do manual labour. Guys on site shouldn't have to work until they are 68 unless they choose too. Those of us in offices have it a lot easier."
A third user, Karen, wrote: "The age rise is utterly disgusting. My amazing mum was on her own. A single mum worked all her life, no holidays, no extravagance spending.
"She worked hard until she was 69 and suddenly died at 71. People who work hard should NOT have to work their whole bloody lives. It's cruel."
What the government has to say
Explaining his decision, Mel Stride told Parliament: "Since the first state pension age review was undertaken in 2017, the increase in life expectancy has slowed." He said the "rapid rises in life expectancy seen over the last century have slowed over the last decade", claiming: "This is a trend seen to a varying degree across much of the developed world."
He added: "For most people in communities, people alive today are expected to live longer than their predecessors. Life expectancy is still projected to improve over time - but compared to the last state pension review, these improvements are expected to be achieved at a slower rate."
Announcing the delay, he continued: "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 a different decision might be appropriate once these factors are clearer.
"I therefore plan for a further review to be undertaken within two years of the next Parliament to consider the rise to age 68 again."
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