The government has announced that the increase of the state pension age to 68 will not be carried forward at this time.
According to current plans, those born on or after 5 April 1977 will be the first cohort to work until age 68. An assessment conducted by the government in 2017 recommended expanding this to include those born in the late 1960s.
The minister of labour and pensions said the pension age would not change until a review.
A decision is now anticipated after the next general election in 2026.
The government is required by law to review proposed system adjustments every six years.
According to a recent report, the life expectancy of retired Britons has decreased by two years since the government last reviewed the state pension age in 2017.
Labour stated that a “rising tide of poverty” was “dragging down” increases in life expectancy.
Thursday saw the release of a distinct report by Baroness Neville-Rolfe examining the factors the government should consider when determining the retirement age.
And on Thursday, Work and Pensions Secretary Mel Stride commissioned an additional inquiry to investigate raising the state pension age.
Mr. Stride stated that a new study was required because previous reviews “were unable to account for significant external challenges, such as the impact of the Covid pandemic and the global inflation caused by Putin’s illegal war in Ukraine.
He added that the new evaluation will produce a report within two years of the new legislature.
Labour supported the government’s position, but John Ashworth, the shadow work and pensions secretary, noted that the government stated last year that an earlier increase in the state pension age was “necessary for the long-term sustainability of public finances.”
“With the general election less than a year away and the government so far behind in the polls. It turns out that not raising the state pension age is not so reckless after all,” he added.
12.5 million pensioners receive a monthly state stipend.
The amount paid will increase by 10.1% the following week to reflect the rising expense of living.
This indicates that it will be:
- The full, new flat-rate state pension is now £203.85 per week, up from £185.15. (for those who reached state pension age after April 2016)
- £141.85 per week to £156.20 per week for the entire, old basic state pension. (for those who reached state pension age before April 2016)
Work and Pensions Secretary Mel Stride will shortly make a statement in the House of Commons to affirm the findings of the most recent statutory review of the pension age.
The Daily Express claimed that Mr. Stride would release a new review after the election.
Two studies have debated pension eligibility age and calculation.
The primary argument for accelerating an increase in the state pension age has always been that individuals are living longer.
The Office of Budget Responsibility expects state pension spending to rise 35% to £148 billion by 2027-28.
The Institute for Fiscal Studies, a prominent economic research organization, stated that it was a “reasonable estimate” that raising the state pension age by one year in the late 2030s would save the government between £8bn and £9bn per year in current value.
However, experts note that although the cost of the state pension has increased, life expectancy has stagnated in recent years.
There is also a large disparity in life expectancy between different regions of the country, with individuals living longer on average in more affluent regions. This complicates the process of establishing a uniform state pension age across the UK.
Currently, the age restriction ensures that no one spends more than a third of their adult existence in retirement.
