Plans to raise pension age could be delayed
By the end of 2028, the pension age is expected to rise to 67 as it currently sits at 66.
However, it has now been revealed that the rise to 68 may be delayed amid falling life expetancy in the UK as a government source told the FT: “They were gung-ho to raise the pension age. But they got cold feet.”
The Sun revealed that ministers were looking to set the pension age at 68 earlier than 2044, with some wanting to push it forward as early as 2033.
A previous review also recommended 2037 and 2039.
Sir Steve Webb, a former pensions minister, said: “The improvement in life expectancy at retirement that was predicted at the time of the last [pension age] review, basically didn’t happen.
“Life expectancy at retirement now is two years shorter than it was when they did the last review.”
Catherine Foot, Director of Phoenix Insights, the longevity think tank, said: “Many people on low incomes in the UK fall out of work because of ill health and disability years, and in a significant number of cases, decades before reaching state pension age.
“Today’s reports reflect the fact that it is not the right time to accelerate the increase given our recent declines in life expectancy and where we are in the political cycle.”
