The Department for Work and Pensions is planning a state pension rule change that could affect millions of people born before 1978. The current State Pension age stands at 66 for both men and women, but it is scheduled to increase to 67 between 2026 and 2028, and further to 68 between 2044 and 2046.
Who Will Be Affected?
Individuals with birthdays in 1978 at the upper end of the timeframe would be impacted. The third State Pension age review will assess whether the rules around pensionable age remain appropriate, based on life expectancy data and evidence from two reports: an independent report led by Dr Suzy Morrissey and a report from the Government Actuary examining the latest life expectancy projections.
Government Actuary's Role
The Government Actuary’s report must advise on whether the current rules mean that, on average, a person reaching pensionable age within a specified period can expect to spend a specified proportion of their adult life in retirement. The report should also include commentary on life expectancy trends, an assessment of current legislative timings for the rise to 68, and sensitivity analysis.
Pensions Commission Revived
The DWP stated: "The statutory review of the State Pension age will sit alongside the new Pensions Commission, which has been revived to look at the overall issue of retirement savings." The original Pensions Commission was established in 2002 and issued its final report in 2005, leading to several policy changes including reforms to the State Pension system and the introduction of automatic enrolment.
Pensions Minister Torsten Bell MP said the role of the revived Pensions Commission is to conduct a review of the entire pensions system and the retirement outcomes it delivers, with "a clear objective: building a strong, fair and sustainable pension system fit for the middle of the twenty first century."
