The government has launched a second review and consultation into the state pension age.
The consultation, launched this week, calls for evidence and information from experts in the fields of longevity and aging, older people and the labour market, intergenerational fairness and the fiscal challenges associated with an aging population.
Baroness Neville-Rolfe has been instructed to prepare an independent report making recommendations to the government following the results of the consultation which closes at 11:45pm on 25th April 2022.
The review will consider whether the rules around pensionable age are appropriate based on latest life expectancy data in addition to information gathered via consultation. It will specifically consider whether the pension age increase to 68 should be brought forward to 2037-39, from the current plan of a gradual rise to 68 between 2044 and 2046, for those born on or after April 1977.
The Pensions Act 2014 requires the government to review the state pension age every six years. A first review was conducted in 2016. The results of this review must be published by 7th May 2023.
Baroness Neville-Rolfe said:
“State pension age will impact most citizens at some point in their lives and I want as wide a range of people as possible to have the opportunity to contribute.
I would encourage anyone with an interest to let me have their views on this important subject by responding to the questions set out below.
In conducting analysis and reaching conclusions, the independent report should have regard to both the sustainability and long-term affordability of the state pension and the views of organisations, individuals, and other interested parties.”
Canada Life technical director Andrew Tully said:
“Any debate around the increase to the state pension will inevitably be controversial. Life expectancy varies hugely across the UK so any change isn’t straightforward.
People living in poorer areas are also much more likely to remain in work while waiting to become eligible for the state pension, so any change will inevitably have a more fundamental impact on some.
That being said, allowing access at different ages would be extremely complex. All in all there are no easy answers and it needs to form part of a wider debate around levelling up, increasing life expectancy across all regions in the UK, and increasing private pension savings through auto-enrolment.
Clear communication of any proposed changes will be essential for success, ensuring people understand how they will be impacted and with plenty of time to plan for their future.”
