Review of the State Pension age
19 October 2016
19 October 2016
An independent review of the State Pension age has been launched.
John Cridland CBE, the State Pension age independent reviewer, has called on the public and representative bodies to have their say as he publishes an interim report on ensuring the State Pension age remains affordable and fair for all beyond 2028.
The Pensions Act 2014 requires the government to review the State Pension age during each Parliament - the first report must be published before 7 May 2017.
Geographical extent – The Pensions Act 2014 covers England, Scotland and Wales only. The Pensions Act (Northern Ireland) 2015 covers Northern Ireland.
The Review is forward looking and takes note of the existing arrangements before April 2028 which are already law. At that point State Pension age will be two years higher than when it was first set in its current form 80 years ago.
Longevity is changing the pensions landscape, with significant increases in life expectancy seen over the past few decades. The choice of State Pension age is not a decision which can be taken lightly, as it affects when people across society decide to retire and has a significant impact on public finances. It follows that any change in State Pension age can only be considered after a close examination of the evidence and the fullest understanding of the impacts any change will have on individuals, government spending and the overall economy.
The people who will be most affected by this Review are defined in three generations that feature throughout the analysis:
- Baby Boomers (born 1945-65)
- Generation X (born 1966-1979)
- Generation Y (born 1980-2000).
All these generations may see their State Pension age affected by this Review. Generation X are most likely to need to take account of any changes to State Pension age in their retirement planning.
Over the past months, evidence has been gathered and informal discussions have taken place with a range of stakeholders to draw out the key issues relevant to State Pension age in the future. The purpose of this interim report is to set out the initial findings and invite any further research, insights or supporting evidence on key themes, which will inform the final report next year. This consultation closes at 31 December 2016 5:00pm.