The Department for Work and Pensions has today announced that John Cridland, former director general of the Confederation of British Industry (CBI), will be leading a review into state pension age.
The review, which is the first for the UK, will evaluate what effects aspects like changing life expectancy will have on the Department's ability to provide state pension and to be able continue to provide for future generations in a sustainable manner.
Since the Pensions Act 2014, state pension age now needs to be assessed during the course of each parliament.
"As our society changes it is only right that we continue to review state pension ages and take into account the relevant factors to make sure that the state pension is sustainable and affordable for future generations," remarked Baroness Ros Altmann, minister for pensions.
Cridland, who is currently chair of the board of transport for the North, has previously worked on negotiating the national minimum wage, sat on the Low Pay Commission for 10 years and was a member of the Advisory, Conciliation and Arbitration Service (ACAS).
"I look forward to meeting many stakeholders, hearing the views of experts and the experience of organisations working in this area to help shape the review," said Cridland. "I know how important this issue is, and will consider all the evidence to ensure that we have a state pension age fit for the future."
Altmann continued: "I am really pleased to announce that John Cridland has accepted the appointment to review the state pension age.
"He has made an impressive contribution to both government policy and business throughout his career and is well placed to report on this issue."
Commenting on the appointment, Tom McPhail, head of retirement policy at Hargreaves Lansdown, said:
We fully expect state pension ages to go up faster than currently planned, and those joining the workforce today are likely to find themselves waiting till their mid-70s to get a pay out from the state system. This is simply a function of the big jumps we continue to see in life expectancy, which the state pension can’t hope to support without costs spiralling out of control.
Whatever decisions they make, the government needs to make sure they communicate them very, very clearly so individuals can plan their retirement savings with some certainty about what they will get from the state, and when they will get it.