State Pension Age should increase and employers should have elder care policies in place
24 March 2017
The report from John Cridland looked at the key issues that drive State Pension age changes including, but not limited to:
- life expectancy
- the challenges faced by those who rely most on the State Pension
- the long-term financial sustainability of the system
In his report, which will be considered before any decision is made on changes to the State Pension age timetable after 2028, Mr Cridland makes a number of recommendations which include:
- State Pension age should rise to 68 between 2037 and 2039
- State Pension age should not increase more than 1 year in any 10 year period, assuming that there are no exceptional changes to the data used
- that all employers should have elder care policies in place which set out a basic care offer
- that people should be able to access a mid-life career MOT and review which should be facilitated by employers and by the government using online support and through the National Careers Service
For full details of John Cridland’s report please read Independent review of the State Pension age.
Periodic review of the rules about State Pension
The Government Actuary’s Department (GAD) was asked to consider 2 alternative scenarios for the State Pension age, reflecting an adult in receipt of the State Pension for either 32% or 33.3% of their projected adult life in retirement. To do this it used figures drawn from life expectancy projections from the Office for National Statistics.
Meanwhile, the Government Actuary’s Department report concluded in their report Periodic review of rules about State Pension age that:
- under a 32% scenario the State Pension age could rise to 69 between 2040 and 2042
- under a 33.3% scenario the State Pension age could reach 69 between 2053 and 2055
No new changes to State Pension age will come into effect before 2028 and the government is committed to maintaining a State Pension that is fair for all generations and helps to provide for the cost of living in retirement. Part of this commitment to fairness includes providing 10 years’ notice of any changes to the State Pensions age.