State pension age rise considered ahead of full review

The state pension age should rise to 68 by 2039, a government report has found. 

The current state pension age for women is between 62 and 65 and 65 for men. For women this will rise to 65 by 2018 with the age for both men and women increasing to 67 by 2028.

The report, which considers key issues such as life expectancy and the financial stability of the system, recommends:

  • withdrawing the triple lock (which guarantees that state pension increase by at least 2.5% a year) in the next parliament 
  • the age should not increase more than 1 year in any 10 year period
  • employers should have policies in place which set out basic care offer for elderly.

No changes to the state pension age will come into effect before 2028.

Steve Cameron, pensions director at Aegon, said:

“Requiring everyone to wait till an ever increasing age to draw a state pension is inflexible and increasingly outdated compared to today’s more flexible and personalised transition into retirement. 

“This is a missed opportunity to meet the needs of those who through health concerns, job pressures or lack of employment opportunity simply can’t keep working into their late 60s.”

The government is planning a review of the state pension age which is due in May 2017.

Contact us today to discuss your retirement planning.