The Government has confirmed it will raise the state pension age (SPA) to 68 between 2037 and 2039, seven years ahead of the date range originally planned. The accelerated rise in SPA is in line with John Cridland’s recommendations following his independent review.
“As life expectancy continues to rise and the number of people in receipt of state pension increases, we need to ensure that we have a fair and sustainable system that is reflective of modern life and protected for future generations,”
The increase reflects the increase in life expectancy and will only affect people currently aged under 47 (born after 5 April 1970). It’s estimated the change will save the treasury £74bn by 2045/46. Anyone younger than this will have to wait for future announcements to learn what their precise pension age will be.
For those employees taking active steps to plan for their retirement, they may need to adjust calculations and their private pension retirement ages to coincide with the new state pension age.
Find out when you can take the State Pension, here State Pension Calculator.
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