State Pension Age Increases

State Pension Age Increases

The government’s review proposes a new timetable for the rise to 68, in line with continuing increases in life expectancy.

Proposed new timetable for State Pension age increases

The government’s review proposes a new timetable for the rise to 68, in line with continuing increases in life expectancy.

The State Pension age is regularly reviewed to make sure that the State Pension is affordable and fair. People are living longer, and spending a larger proportion of their adult life in retirement than in the past.

When the State Pension was introduced in 1948, a 65-year-old could expect to spend 13.5 years in receipt of it – around 23% of their adult life. This has been increasing ever since. In 2017, a 65-year-old can now expect to live for another 22.8 years, or 33.6% of their adult life.

Latest projections from the Office for National Statistics show that the number of people over State Pension age in the UK is expected to grow by a third between 2017 and 2042, from 12.4 million in 2017 to 16.9 million in 2042.

The proposals

Under the current law, the State Pension age is due to increase to 68 between 2044 and 2046.

Following a recent review, the government has announced plans to bring this timetable forward. The State Pension age would therefore increase to 68 between 2037 and 2039.

Your date of birth How the proposals affect you
On or before 5 April 1970 No change
Between 6 April 1970 and 5 April 1978 Your State Pension age is currently 67. It would increase to between 67 years and 1 month, and 68 years, depending on your date of birth
After 6 April 1978 No change. Your State Pension age remains 68

These proposed changes would have to be approved by Parliament before they are agreed.

Those affected by this proposed timetable will on average continue to spend longer in receipt of the State Pension than anyone reaching State Pension age in the last 25 years.

Secretary of State for Work and Pensions, David Gauke, said:

I want Britain to be the best country in the world in which to grow old, where everyone enjoys the dignity and security they deserve in retirement.

Since 1948 the State Pension has been an important part of society, providing financial security to all in later life. As life expectancy continues to rise and the number of people in receipt of State Pension increases, we need to ensure that we have a fair and sustainable system that is reflective of modern life and protected for future generations.

Combined with our pension reforms that are helping more people than ever save into a private pension and reducing pensioner poverty to a near record low, these changes will give people the certainty they need to plan ahead for retirement.

The proposed changes were informed by the independent recommendations made by John Cridland CBE in March 2017.

No one born on or before 5 April 1970 will see a change to their current proposed State Pension age.

Preparing for retirement

You can check your State Pension online at any time for a forecast of how much you could get. The service will also confirm when you will reach State Pension age, under the law as it stands.

Saving into a workplace pension can be the best way of preparing for retirement, as when you pay in, your boss does too. More than 8 million people are already saving into a workplace pension.

 

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