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State pension age rise to 68 will not be brought forward yet | State pension age rise to 68 will not be brought forward yet |
(about 3 hours later) | |
A rise in the state pension age to 68 will not be brought forward yet, the government is to announce. | |
Those born on or after 5 April 1977 will be the first cohort to work to 68, under current plans. A 2017 government review suggested expanding this include to those born in the late 1960s. | |
The work and pensions secretary is expected to tell MPs on Thursday that now is not the time to make the change. | |
A decision is now expected in 2026, after the next general election. | |
By law the government is required to examine planned changes to the system every six years. | |
A recent report found life expectancy for retiring Britons is now two years lower than when the government last reviewed the state pension age in 2017. | |
The current review, by Baroness Neville-Rolfe, is looking at what factors the government should take into account when setting the pension age. | |
When do you get the state pension? | |
Chancellor announces state pension to rise by 10.1% | |
The state pension is a monthly payment currently made to 12.5 million people who have reached qualifying age and have paid enough in national insurance contributions. | |
Next week, the amount paid will increase by 10.1% in line with the rising cost of living. | |
That means it will be worth: | |
£203.85 a week (up from £185.15) for the full, new flat-rate state pension (for those who reached state pension age after April 2016) | |
£156.20 a week (up from £141.85) for the full, old basic state pension (for those who reached state pension age before April 2016) | |
Work and Pensions Secretary Mel Stride will make a statement in the House of Commons later to confirm the conclusions of the latest statutory review on the pension age. | Work and Pensions Secretary Mel Stride will make a statement in the House of Commons later to confirm the conclusions of the latest statutory review on the pension age. |
The Daily Express newspaper, where the story first appeared, said Mr Stride would announce a new review to be carried out after the next election. | The Daily Express newspaper, where the story first appeared, said Mr Stride would announce a new review to be carried out after the next election. |
The qualifying age to receive the pension has been a matter of intense speculation, with two reviews having been considering the appropriate age and how that should be calculated. | |
The main argument for accelerating a rise in the state pension age has always been that people are living for longer. | |
The state pension bill is estimated to grow by 35% to around £148bn by 2027-28 according to the Office for Budget Responsibility. | |
The Institute for Fiscal Studies, a leading economic research group, said that it was a "reasonable estimate" that increasing the state pension age by one year in the late 2030s would save the Government £8bn to £9bn a year in today's terms. | |
But experts point out that, although the cost of the state pension has been rising, life expectation has stalled recently. | |
There is also a wide difference in life expectancy across different parts of the country, with people generally likely to live longer in more affluent areas. That creates an added complication when setting a state pension age which is uniform across the UK. | |
At the moment, the age limit is based on ensuring no-one spends more than one third of their adult life in retirement. | |
State pension increases currently set out in legislation are: | State pension increases currently set out in legislation are: |
A gradual rise to 67 for those born on or after April 5, 1960 | A gradual rise to 67 for those born on or after April 5, 1960 |
A gradual rise to 68 between 2044 and 2046 for those born on or after April 5, 1977 | A gradual rise to 68 between 2044 and 2046 for those born on or after April 5, 1977 |
Proposals to raise the state pension age are often controversial. Riots broke out on the streets of France after the French government decided to force through pension reforms without a vote in parliament. | |
A Department for Work and Pension spokesperson said: "The government is required by law to regularly review the State Pension age and the next review will be published by 7 May." | |
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Related Topics | Related Topics |
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Personal finance | Personal finance |
Pensions | Pensions |