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Autumn Statement: Plan to raise state pension age sooner | Autumn Statement: Plan to raise state pension age sooner |
(about 4 hours later) | |
The date when people must be 68 to draw a state pension - formerly scheduled for 2046 - will be brought forward to the mid-2030s, Chancellor George Osborne will announce later. | |
Plans to be announced in Mr Osborne's Autumn Statement mean the age could rise again to 69 by the late 2040s. | |
The alteration is said to be deemed necessary as life expectancy is rising. | The alteration is said to be deemed necessary as life expectancy is rising. |
Moving the change forward will ensure "the country can offer people decent pensions", a government source said. | Moving the change forward will ensure "the country can offer people decent pensions", a government source said. |
The move would affect people now aged in their 40s and below. | |
Mr Osborne is due to deliver his statement to the House of Commons at 11:15 GMT. Among the measures reported so far are: | |
A new formula will increase the state pension age to keep pace with increasing life expectancy. | |
The government will say that people should spend on average no more than one-third of their adult lives in retirement. | |
This means people now in their 20s would have to work until they are 70, many observers believe. | |
The BBC has also learned that the chancellor will cap business rate increases in England and Wales to 2% next year, rather than the rate of inflation, in an effort to boost firms and High Streets. | The BBC has also learned that the chancellor will cap business rate increases in England and Wales to 2% next year, rather than the rate of inflation, in an effort to boost firms and High Streets. |
The government has already announced the state pension age will increase to 66 by 2020 and 67 by 2028; these dates will not change. | |
But it said in a statement: "Under current estimates of life expectancy the principle being confirmed today implies the SPA (state pension age) rise to 68 could come forward to the mid-2030s, from its current date of 2046, rising to 69 by the late 2040s. | But it said in a statement: "Under current estimates of life expectancy the principle being confirmed today implies the SPA (state pension age) rise to 68 could come forward to the mid-2030s, from its current date of 2046, rising to 69 by the late 2040s. |
"This will affect people in their forties and below; no-one over 50 will have a retirement age of 68 or more." | "This will affect people in their forties and below; no-one over 50 will have a retirement age of 68 or more." |
A review of the way the state pension age is calculated, announced earlier this year, will be informed by "up-to-date" life-expectancy figures. | A review of the way the state pension age is calculated, announced earlier this year, will be informed by "up-to-date" life-expectancy figures. |
A government source said: "This is part of the government's long-term plan to secure a responsible recovery. | A government source said: "This is part of the government's long-term plan to secure a responsible recovery. |
"It is a difficult decision to make sure there is a fair deal across future generations and that the country can live within its means. | "It is a difficult decision to make sure there is a fair deal across future generations and that the country can live within its means. |
"It will help make sure the country can offer people decent pensions in their old age in a way that with increasing life expectancy the country can also afford." | "It will help make sure the country can offer people decent pensions in their old age in a way that with increasing life expectancy the country can also afford." |