The Department of Work and Pensions (DWP) has launched a second review of the state’s retirement age.
This could affect the age at which people can retire – which is currently 66 for men and women across the UK.
The policy is regularly reviewed to make sure it is affordable and fair as people are living longer.
This means that they spend a greater proportion of their adult life in retirement than in the past.
The DWP previously explained that the reason for this review was that “when the state pension was introduced in 1948, a 65-year-old could expect to spend 13.5 years receiving the benefit, or about 23% of his adult life “.
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However, this figure has steadily increased since then and it is now estimated that a 65-year-old can expect to live another 22.8 years, or 33.6% of their adult life in retirement. reports the Daily Record.
The latest projections from the Office for National Statistics (ONS) show that the number of people over retirement age in the UK is expected to increase by a third to reach 16.9 million in 2042.
This second review will examine whether the rules regarding the retirement age are appropriate, based on the latest data on life expectancy and other evidence.
The state retirement age is currently 66, and two further increases are currently provided for in legislation.
- a gradual increase to 67 for people born on or after April 5, 1960
- a gradual increase to 68 between 2044 and 2046 for people born on or after April 5, 1977
The first review of the state’s retirement age was undertaken in 2017 and concluded that the next review should consider whether the increase to 68 should be brought forward to 2037-2039 before tabling changes to the legislation. .
The DWP said: “As the number of people over retirement age increases, due to a growing population and people living on average longer, the government needs to ensure that decisions on way of managing 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.”
The review will consider a wide range of evidence, including:
- Examining the implications of the latest data on life expectancy
- Provide a balanced assessment of the costs of an aging population and the state’s future pension spending
- Take into account changes in the labor market and the ability and opportunities of people to work beyond state retirement age
- Develop transparent and fair options for setting the legislative timetable for the state’s retirement age
The Pensions Act 2014 requires the UK government to regularly review the state’s retirement age and, by law, this latest review must be published by 7 May 2023.
With all of these proposed changes, it can be difficult for people to know exactly when they will be eligible for the state pension and be able to retire.
Fortunately, the UK government has provided a free, easy-to-use online tool that gives an exact state pension eligibility date, just by entering your gender and date of birth.
The tool provides information on when the user:
How to use the Retirement Age tool
Choose whether you are looking to calculate the age of your state pension or the age of your bus pass – you can do one, then check the other.
Once the state retirement age option is selected, enter your date of birth.
Then select whether you are male or female.
The final screen reveals the exact date you will reach retirement age.
It is also possible from this screen to get information on when you might become eligible for pension credit, get a pension forecast, or receive other state pension information.
Check your state retirement age on the GOV.UK website here.
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