State Pension age review

In March 2016, John Cridland CBE, the former Director General of the Confederation of British Industry (CBI) was appointed by the government to lead an independent review of the State Pension age.

The State Pension age for both men and women is set to increase to 67 by April 2028. The review was tasked with looking beyond the existing timetable. The results of the review have now been published in an 130 page report. The Pensions Act 2014 introduced a review of State Pension age to be conducted at least once every 6 years. This is the first of these reviews.

The report recommends a further increase in the State Pension age to 68 over a two year period starting in 2037 and ending in 2039. The report also recommends that the State Pension age should not increase more than one year in any ten year period, assuming that there are no exceptional changes to the data.

The report cited some interesting background information to the need for these increases based on longer life expectancy and an aging population. We are told that'.... in 1917 King George V sent the first telegrams to those celebrating their 100th birthday. 24 were sent that year. In 2016 around 6,000 people will have received a card from Her Majesty the Queen. In 2050, we expect over 56,000 people to reach this milestone'. A baby girl born this year could be expected to live to be 94 years and a boy to be 91.

Other recommendations put forward in the report included:

  • Introducing more flexibility within a universal State Pension age
  • Removing the pension triple lock guarantees
  • Supporting those working past State Pension age
  • Contribution of older workers as trainers
  • Automatic Enrolment Review focused on the self-employed

Source: Department for Work & Pensions | 20-04-2017



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