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Autumn Statement: State pension age rise brought forward | |
(about 5 hours later) | |
More people will have to work until they are 68 before being entitled to a state pension under plans to be announced by Chancellor George Osborne. | |
The current state pension age was set to change from 65 to 68 in 2046. | |
But that date will be brought forward to the mid-2030s, Mr Osborne will say in his Autumn statement. | |
The pension age could rise again to 69 in the late 2040s, he will add, meaning people now in their 20s may have to work until they are 70. | |
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. |
Mr Osborne is due to deliver his statement to the House of Commons at 11:15 GMT. Among the measures reported so far are: | 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. | 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. | The government will say that people should spend on average no more than one-third of their adult lives in retirement. |
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. | 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." |
* The BBC will have full coverage of the Autumn Statement with live text and video and analysis on the BBC News website, coverage all day on the BBC News Channel, a BBC2 special programme from 11:00 - 14:00 GMT and a BBC Radio 5 Live special from 11:15 - 14:00 GMT |