Published: Thu, July 20, 2017
Finance | By Kristine Clayton

Govt brings forward rise in state pension age

Govt brings forward rise in state pension age

In announcing further rises to the state pension age today - from 67 to 68 in 2037-39, seven years sooner than is now legislated for - the government repeated the case laid out by Sir John Cridland for why such rises are necessary.

Work and pensions secretary David Gauke has denied he announced an increase in the state pension age on the same day as the BBC released details of how much it pays its star presenters in an attempt to "bury bad news".

According to the government, failing to act now in light of compelling evidence of demographic pressures would be irresponsible and place an unfair burden on younger generations. "A 32% timetable is consistent with the average proportion of adult life spent above state pension age experienced by people over the last 25 years".

The new 68 age will affect everyone born between 6April 1970 and 5April 1978, now aged between 39 and 47. The government's proposed timetable aims to bring this back to 6.1 percent of GDP.

I would like to see more flexibility in state pension age: perhaps with a flexible band of ages at which the pension could start, or perhaps allowing people to take their state pension at a lower age, either because they are seriously ill or because they have worked for more than 50 years.

"Many occupational schemes are created to interact with the state pension system", he said.

The state pension age is now set to increase to 68 between 2044 and 2046, but under new proposals this would be brought forward seven years.

'The government is right not to have left this increase in the pension age until the mid-2040s.

Shadow work and pensions secretary Debbie Abrahams described Mr Gauke's announcement as "an astonishing continuation of austerity that means 34 million people will work longer than under Labour's plans".

Labour said the change - in line with the recommendations of this year's Cridland Report - would mean 34 million people working longer than they would under its plan to hold the retirement age at 66.

In response to Mr Gauke's comments, Labour MP Abrahams said, "we can not allow this Government to push people to work longer and longer to pay for its failed austerity agenda".

Mr Gauke told the Commons the move would save the Treasury £74 billion by 2045/46 compared with the previous proposals.

Being 68 years old in 2037 is not the same as being 68 in 1948, when the modern state pension was introduced.

The Government said it had brought forward the timetable "to maintain fairness between generations" and to help fund the rising cost of the state pension.

The median life expectancy for a male in the United Kingdom is 86, and 89 for a female.

There will be another state pension age review in the next parliament, and I hope that will provide a chance to reconsider these issues. If they can afford to wait longer, they can get more state pension; but if they cannot manage until that age, it is just too bad.

Like this: