State pension age rises to 68: Government to accelerate timetable for increases
Rises in the state pension age will be brought forward in plans announced by the government this afternoon.
Work and pensions secretary David Gauke revealed to parliament proposals for the pension age to rise to 68 over two years from 2037.
Those born before 5 April 1970 will not be affected.
Retirement ages were previously scheduled to rise to 67 by 2028 and 68 by 2046.
But two pivotal reports for the government published earlier this year highlighted this timetable may need to be brought forward in order to stop state pension costs spiralling out of control.
“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,” said Gauke.
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.
He continued: “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.”
Read more: Are the Tories plotting a dramatic hike in the state pension age?
‘Informed’
In 2014, the government committed to reviewing the state pension age once every parliament.
In March this year, John Cridland delivered a government commissioned report on the matter alongside separate findings by the state’s own actuary department.
Cridland concluded the state pension age should be increased to 68 in less than 20 years’ time.
The government said the plans had been “informed” by Cridland’s findings.
The move will likely be a big test in the House of Commons of Theresa May’s government. Labour campaigned to row back on state pension age increases, capping them at 66.
Gauke has previously referenced the need for “big decisions” on pensions, saying: “We need a state pension that is both fair and sustainable”.
Read more: The state pension shake-up: what the experts say
How the proposals affect you?
Date of birth
Will you be affected?
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