Work and Pensions Secretary Mel Stride has warned of a "pretty hairy" impact on public finances as the government weighs up whether to increase the state pension age. The latest chancellor Jeremy Hunt announced in his Autumn statement that the state pension age will be reviewed, prompting fears it could be raised sooner than previously planned.
The official retirement age, which is the earliest you can start claiming your state pension, is currently 66 for men and women, reports Leicestershire Live. An increase in this age would mean people who currently work likely won't be able to retire until they are old than that.
It's thought that the review could recommend that already planned rises in state pension age - to 67 between 2026 and 2028, and to 68 between 2044 and 2046 - could be brought forward. Mr Stride this week said that life expectancy, the cost of the state pension and "intergenerational fairness" were being considered as part of an ongoing review, which would be published within six months.
READ MORE: DWP increases State Pension age by two years for men and women due to 'growing population'
He told MPs on the Work and Pensions Committee: "I think there are various moving parts in assessing where we should go with the state pension age. One of them is life expectancy and more precisely, what proportion of your life should we expect people to have in retirement as opposed to not in retirement?"
He added the cost also needed to be considered. "If you look at the consequences of us living longer, and you look at that, for example, as expressed in the financial stability report that the Office for Budget Responsibility (OBR) produces every year, where it casts out 50 years and says ‘what are the public finances likely to look like given the demographic change that’s going on?’, the cost of pensions being an element within that, it all gets pretty hairy.
"So there is also certainly this other element of 'what's the cost going to be'? I think there are other issues, intergenerational fairness, when you look at the split between how long somebody works to support those that are not working."
A previous review of the state pension age in 2017 led by former Confederation of British Industry boss John Cridland suggested people should spend on average around one third of their adult life in retirement. But Mr Stride refused to be drawn on this when asked.
READ NEXT:
Meghan Markle criticised for 'mocking' curtsy as she recalls Queen meeting
Paul O'Grady leaves fans emotional with 'amazing' injured dogs update
Martin Lewis issues mortgage 'payment shock' warning as banks consider aid measures
One-off payments the government is handing out by the end of the year - full list
Families warned 10 days to claim benefit that could lead to £3,824 extra a year
