Published: 13/01/2022 By Hannah McCormackLast week the Government launched a review of the State Pension age. Based on the latest life expectancy data the review will look at whether the pensionable age is currently appropriate.
As it stands the State Pension age is 66 with two further increases as follows:
A rise to 67 for those born on or after April 1960
A rise to 68 for those born on or after 1977
The new review must be published by May 2023 and will deem whether its acceptable to bring the new State Pension age to 68.
As we are living longer and the amount of people over the State Pension age gets larger the Government has to plan accordingly. People rely on the State Pension so the Government needs to ensure it is fair and clear to the taxpayer so they can plan for their retirement.
According to the Government website their review will consider the following when deciding whether to increase the State Pension age:
- examine the implications of the latest life expectancy data
- provide a balanced assessment of the costs of an ageing population and future State Pension expenditure
- consider labour market changes and people’s ability and opportunities to work over State Pension age
- and develop options for setting the legislative timetable for State Pension age that are transparent and fair
For reference https://www.gov.uk/government/news/second-state-pension-age-review-launches
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