State pension age review (27-10-2016)
Source: Department for Work & Pensions | 13-10-2016
In March of this year, John Cridland CBE, the former Director General of the Confederation of British Industry (CBI) was appointed by the government to lead an independent review of the state pension age.
The state pension age for both men and women is set to increase to 67 by April 2028. The review is looking beyond the existing timetable to April 2028. The results of the review are expected to be published in May 2017 after the government has considered the recommendations. The Pensions Act 2014 introduced a review of State Pension age to be conducted at least once every 6 years. This is the first of these reviews.
An interim report has now been published. In the interim report, Mr Cridland considers different options for what retirement might look like beyond 2028, taking into account changes in life expectancy and wider changes in society.
In particular, the report looks at the following three areas:
- Affordability: Examining the ratio of pensioners to working age people and spending on pensions as a proportion of GDP.
- Fairness: Looking at whether outcomes are fair between and within different generations of pensioners, for instance men in routine jobs have 6 years difference in life expectancy at birth to men in professional jobs.
- Fuller Working Lives: Looking at why people drop out of the labour market early and how government and industry might mitigate this. The report cites the fact that 1.2 million people work over the age of 65 but a significant proportion of people also drop out of the labour market early due to ill health and other factors.
Commenting on the report, Mr Cridland said:
'The review continues to gather evidence to inform its recommendations and the views of the public will form a key part of that data. I want to encourage as many people as possible to respond to the consultation and really hope to stimulate wider discussion.'