The Government has confirmed the State Pension age will rise to 67 by the end of 2028 for anyone born after April 1960.
The Pensions Act 2014 forces the Secretary of State for Work and Pensions to regularly review State Pension age – and after this one there’s to be a further review within two years of the next Parliament to reconsider the rise to age 68.
This gives the Government appropriate time to take into account evidence which is not yet available on the long-term impact of recent challenges, including the Covid pandemic and global inflationary pressures. These events bring a level of uncertainty in relation to the current data on life expectancy, labour markets and the public finances.
This will ensure that the Government is able to consider the latest information to inform any future decision on the State Pension age. This will include life expectancy and population projections updated with 2021 Census data and the latest demographic trends, the economic position and the impact on the labour market of the recently announced package of measures to tackle inactivity.
Given the wide-ranging impacts of changing the State Pension age, it is important to take the time to get any changes right.
Secretary of State for Work and Pensions Mel Stride said: “It’s essential the State Pension remains sustainable and fair across the generations. Our balanced approach will help achieve this and ensure we continue to provide security and dignity in retirement for millions of people across the country.
“The Government remains committed to the principle of providing 10 years notice of changes to State Pension age, enabling people to plan effectively for retirement. All options for the rise to the State Pension age from 67 to 68 that meet the 10 years’ notice period will be in scope at the next review.”
