Published On: Fri, Dec 2nd, 2022

State pension age could rise earlier – costing millions of Britons £10,000 | Personal Finance | Finance

Mel Stride, the new work and pensions secretary, has suggested the state pension age could be raised as public finances struggle. The DWP secretary suggested the state pension age could increase, even though life expectancy rises have slowed – with a decision on the matter pending.

Mr Stride told MPs: “There are various moving parts in assessing where we should go with the state pension age.

“One of them is life expectancy and more precisely, what proportion of your life should we expect people to have in retirement, as opposed to not in retirement?

“Another is cost, and if you look at the consequences of us living longer, and you look at that, for example, as expressed in the financial stability report that the OBR (Office for Budget Responsibility) produces every year, where it casts out 50 years and says, ‘What are the public finances likely to look like given the demographic change that’s going on?’.

“The cost of pensions being an element within that, it all gets pretty hairy.”

READ MORE: WASPI urges Rishi Sunak to act on state pension age changes

“It must also ensure that as the population becomes older, the state pension continues to provide the foundation for retirement planning and financial security.”

The review is set to consider a wide range of evidence, such as the latest life expectancy data, labour market changes, and future expenditures.

The UK Government stated during the passage of the Pensions Act 2014 that the state pension age review would consider evidence from across the UK.

The review will therefore consider differences across countries and regions.

This will include Northern Ireland, it was added.

It will also consider effects for individuals with different characteristics and opportunities, including people at risk of disadvantage.

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