Government to review state pension age for second time

14.03.2022
Christopher Egmore
Financial Planning
Chris Egmore

The first Review of State Pension age was undertaken in 2017 but the government has now launched a second pension age state review, which will consider whether the increase to age 68 should be brought forward to 2037-39.

Chris Egmore

The current thinking is a gradual rise to age 68, between 2044 and 2046, for those born on or after April 1977.

This latest review will also consider whether the rules around pensionable age are appropriate, based on the latest life expectancy data and other evidence.

State Pension age is currently 66 and two further increases are currently set out in legislation: a gradual rise to 67 for those born on or after April 1960; and a gradual rise to 68 between 2044 and 2046 for those born on or after April 1977.

This review will consider a wide range of areas and evidence, for example, it will:

  • examine the implications of the latest life expectancy data

  • provide an assessment of the costs of an ageing population and future State Pension expenditure

  • consider labour market changes and people’s ability as well as opportunity to work beyond State Pension age

  • and develop options for setting the legislative timetable for State Pension age that are both transparent and fair

It is proposed that this latest Review must be published by 7 May 2023.

With all these proposed changes it can be tricky for people to know exactly when they will qualify for State Pension and/or when they will be able to retire.

So as the state pension age continues to get pushed back it is important to review any private pension provision you have and the options available to you, as many people plan to retire before their state pension commences. Therefore, having adequate private provision in place and planning appropriately, becomes ever more important. 

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