Plans to bring forward a planned rise in the State Pension age to 68 have been put on hold amid falling life expectancy across the UK. Work and Pensions Secretary Mel Stride announced to MPs in the Commons on Thursday that the planned rise to 67 will go ahead, but any move to increase it further to 68 will be reviewed in two years, after the next general election, to take into account the outcome of an independent review.
During a formal meeting in front of the Work and Pensions Committee on Wednesday, Mr Stride would not be drawn on whether State Pension age changes would be happening earlier than planned, telling the cross-party group of MPs that an announcement would be made “by the statutory deadline of May 7, when all will be revealed”.
State Pension age is currently 66 for both men and women and is due to rise to 67 between 2026 and 2028, with a further rise to 68 planned between 2044 and 2046. However, reports earlier this year suggested that the UK Government wants to bring the rise to 68 forward to the mid-2030s.
Mr Stride confirmed that the UK Government will delay an increase to the State Pension age, amid falling life expectancy rates. It followed reports and speculation in recent weeks that the plan to bring forward the rise could be pushed back until after the next general election, in part due to concerns about a backlash from middle-aged voters.
According to the Office for Budget Responsibility (OBR), the annual State Pension bill for 2022/23 is £110bn, but is estimated to increase to around £148bn by 2027/28. A DWP spokesperson said: “The Government is required by law to regularly review the State Pension age and the next review will be published by May 7.”
Commenting on the announcement, Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: "The accelerated shift to age 68, once seen as a foregone conclusion, has been shelved. Work and Pensions Secretary Mel Stride told the Commons that any further increase would not be considered until after the next general election.
"Looking more widely the increases in longevity which have fuelled previous increases have slowed and it’s fair to say many people’s health would make working until age 68 incredibly difficult. People have worked hard for many years and need certainty as to when they will receive their state pension to help them plan effectively and this move will come as a real relief.
"However, it remains a tricky balancing act. Our ageing population makes the state pension eye-wateringly expensive, and any government needs to be acutely aware of the need to support the older population without placing undue demands on younger workers. Increasing state pension age was one lever the government could deploy but it looks like it’s becoming much more difficult to do so.
"The time has come for a review of the state pension, particularly the role of the triple lock. It has played a role in boosting state pension incomes, but the Cridland Review said a time would come when it would become inter-generationally unfair and would need reform. This may be a decision the government chooses to push back until after a general election, but it is an issue that needs to be addressed.”
You can find out when you will be able to retire using the online tool at GOV.UK.
How to use the Pension Age tool
- Choose whether you are looking to calculate your State Pension age or bus pass age - you can do one, then check the other
- Once the State Pension age option is selected, input your date of birth
- Next, select whether you're a man or woman
- 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.
To keep up to date with the latest State Pension news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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