The Department for Work and Pensions (DWP) has begun a second review of the statutory retirement age, which is currently set at 66 for both men and women.
The age is reviewed regularly as people generally live longer and therefore spend a greater part of their life in retirement.
As reported by the Daily Record, the DWP has previously said: “When the state pension was introduced in 1948, a 65 year old could expect to spend 13.5 years collecting this benefit, or around 23% of his adult life”.
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However, nowadays, it is estimated that a 65-year-old can expect to live 22.8 years longer on average, which represents 33.6% of their adult life.
New data from the Office for National Statistics (ONS) reveals that the number of people over retirement age is set to rise by a third to 16.9 million by 2042.
The new review will examine whether the current rules on retirement age are appropriate in view of increasing life expectancy.
The legal retirement age is currently 66, but two increases are currently provided for by law: a gradual increase to 67 for those born on or after April 5, 1960, and a gradual increase to 68 between 2044 and 2046 for people born on or after this date. April 5, 1977
The last state retirement age review was conducted in 2017, when it was decided that the next review should determine whether the age increase to 68 should be brought forward to 2037- 39.
The DWP said: “As the number of people over state pension age increases, due to a growing population and people living longer on average, the government must ensure that decisions on how to manage its costs are sound, fair and transparent to taxpayers. now and in the future.
“It must also ensure that as the population ages, the state pension continues to provide the basis for retirement planning and financial security.”
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What will the revision of the state retirement age take into account?
During the review, a wide range of evidence will be considered, such as:
- Examination of the implications of the latest data on life expectancy
- Provide a balanced assessment of the costs of an aging population and future state pension expenditure
- Take into account the evolution of the labor market and the ability and opportunities of people to work beyond the legal retirement age
- Develop options for setting the legislative timetable for the state retirement age that are transparent and fair
Under the Pensions Act 2014, the UK government is required to review the statutory retirement age regularly and, by law, this latest review must be published by 7 May 2023.
With all these proposed changes, it can be difficult for people to know exactly when they will be eligible for the Sate Pension and can retire.
That’s why the UK government has provided a free and easy-to-use online calculator that gives an exact date for state pension qualification, just by entering your gender and date of birth.
The tool provides information on when the user:
How to use the Retirement Age tool
The tool allows you to calculate the age of your state pension and your bus pass.
Once the state retirement age option is selected, enter your date of birth and gender.
The final screen reveals the exact date on which you will reach the legal retirement age.
It is also possible from this screen to get information about when you might become eligible for pension credit, get a pension forecast, or receive other state pension information.
Check your state pension age on the GOV.UK website here.