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DWP considering raising state pension age to 68 – how it could affect you

todayJune 13, 2022

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A Department for Work and Pensions (DWP) review into the state pension age could see it raised to 68, years earlier than planned. At present, the pension age is set at 66, but reviews are carried out to ensure it is both fair at a time when people are living longer, and affordable for the government.

The age is due to increase from May 2026, with proposals also under consideration to raise the age to 68 much earlier than planned, LancsLive reports. It’s currently scheduled to come into force between 2044 and 2046, but it could now be brought forward to 2037 and 2039.

The DWP has previously said the review is needed 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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But this has been increasing ever since and it is now estimated that a 65-year-old can expect to live for another 22.8 years, or 33.6 per cent of their adult life in retirement. The latest projections from the Office for National Statistics (ONS) show that the number of people over State Pension age in the UK is expected to grow by a third to 16.9 million in 2042.

The DWP said: “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.”

A review is considering:

  • a gradual rise to 67 for those born on or after April 5, 1960
  • a gradual rise to 68 between 2044 and 2046 for those born on or after April 5, 1977

You can check the State Pension age tool to see when you can expect to retire.

Written by: thehitnetwork

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