The Department for Work and Pensions (DWP) is in the process of reviewing the State Pension age, which is currently 66 for men and women.
The age at which people can begin claiming their State Pension is re-evaluated frequently to ensure that it remains fair as life expectancy increases.
According to the DWP, the review is being carried out because "when the State Pension was introduced in 1948, a 65-year-old could expect to spend 13.5 years receiving the benefit, around 23 per cent of their adult life".
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In 2022, though, a 65-year-old can expect to live on average for a further 22.8 years — which is equivalent to 33.6% of their adult life.
As reported by the Daily Record, new data from the Office for National Statistics (ONS) reveals that the amount of people over the State Pension age is predicted to increase to 16.9 million by 2042.
The new review will examine whether the current State Pension age is appropriate.
Two gradual State Pension age rises are laid out in legislation: an increase to 67 for people born after April 5, 1960, and an increase to 68 between 2044 and 2046 for people born after April 5, 1977.
A previous review of the State Pension age was carried out in 2017, when it was found the following review should examine whether this planned increase to 68 should be expedited to 2037-39.
According to the DWP: “As the number of people over State Pension age increases, due to a growing population and people on average living longer, the government needs to make sure that decisions on how to manage its costs are robust, fair and transparent for taxpayers now and in the future.
“It must also ensure that as the population becomes older, the State Pension continues to provide the foundation for retirement planning and financial security.”
What will the State Pension age review consider?
In the review, a variety of evidence and data will be examined, such as:
- New life expectancy data
- Ageing population costs and future State Pension expenditure
- Labour market changes and the population's ability to continue working past the State Pension age
- The legislative timetable for State Pension age
As laid out in the Pensions Act 2014, the UK Government is required to review the State Pension age on a regular basis, and the new review must be published prior to May 7, 2023.
For anybody confused about when they will be eligible to claim their State Pension, the UK Government has shared an online checker that can tell you after inputting your gender and date of birth.
The online checker can tell you when you will reach the State Pension age, and qualify for Pension Credit.
