The DWP has today announced they will bring forward when the State Pension Age increases to 68.
- State pension age to rise to 68 by 2039 (current programme wouldn’t reach age 68 until 2046): anyone aged under 47 today would have to wait until at least age 68
- This change will affect an estimated 5.8 million people
- Not looking to legislate until next review in 2023 to ensure latest life expectancy figures are used. This effectively kicks the can down the road for another Government to deal with.
- Government accepts recommendation from independent review of the State Pension by John Cridland back in March 2017
- Government aiming for the State Pension to be sustainable, fair to all generations and aim that up to 32% of life is spent in retirement
- The Government was legally required to respond to this by 7th May, however a delay citing the General Election has resulted in today’s announcement.
Tom McPhail - Head of Policy at Hargreaves Lansdown:
"Today’s announcement suggests millions will be waiting longer for their State Pension, however as the Government will not legislate for this until 2023 at the earliest they have essentially kicked the can down the road for a future Government to deal with. Importantly there is acknowledgement of the knock on impact to those caring for relatives with further plans to follow in due course promised.
For anyone yet to reach age 47, there is still time to adjust their retirement plans by looking to contribute more or look to change where they invest. We feel it is important the government meets them halfway; we need a national savings strategy to help people save and invest for their future. A good starting point would be for the government to look at a savings commission."