UK pension age likely to rise again
The outcomes of John Cridland’s consultation on state pension age (SPA) have been widely reported in the press over the last week. This review aimed to look at issues of affordability, fairness (particularly in terms of life expectancy) and understanding issues of early exit from the labour market by those in their 60’s.
The results reported in the press to date focus primarily on the need to increase the SPA quicker than currently planned and a view that the so-called ‘triple lock’ on pensions should be removed in the next parliament (see for example this coverage in the Guardian).
Current plans to raise SPA focus on an increase (for both men and women) to 67 between 2026 and 2028, and then to 68 between 2044 and 2046. This review suggests the increase to 68 is brought forward to between 2037 and 2039, and a subsequent rise to 70 would then be considered.
There is much focus in the report on ‘intergenerational fairness’ in terms of the outcomes but although there is detailed consideration of factors impacting health and life expectancy at this stage it is not clear how these feature in terms of the recommendations made for changes to SPA. The report includes some discussion about funding benefits for those most in need but this is an area that requires more clarity and discussion.