Possible five-year postponement of state pension age rise for those under 50
16 Nov 2015
Falls in life expectancy levels could result in a delay of the planned rise in the state pension age to 68, new projections suggest.
The Office for National Statistics (ONS) is set to publish life expectancy estimates next month, which are likely to forecast a significant fall in longevity.
These life expectancy estimates are used to generate timetables showing rises in the retirement age, which is officially set to climb to the age of 68 by the year 2046.
However, indications from the Government have revealed that British people should allocate a third of their adult lives for retirement, meaning that the rise in the state pension age to 68 could happen by 2036 under this approach.
Now some experts are suggesting that the predicted fall in life expectancy could result in the rise being delayed by five years.
The delay would affect those currently aged between 42 and 48. Additionally, people aged between 43 and 47 could be able to retire a year earlier, whilst those aged 30 and under could also gain an advantage from the delay in the retirement age ascending to 69.
‘If it is the case that life expectancy is falling, then the state pension age should also fall,’ stated former pensions minister, Steve Webb. ‘This was never meant to be something that was an upward ratchet. If it goes the other way, people should feel the benefit.’
A Department of Work and Pensions spokesman revealed: ‘State pension age will be reviewed each Parliament from 2017, taking into account the latest available life expectancy statistics and any other relevant data’.