Matthew Wright 7am - 10am
Millions face working longer due to state pension reform
17 June 2022, 14:42
Millions of workers face working longer due to a shake up of the state pension age.
An independent review has said that state pension age could be increased to 68 between 2044 and 2046, seven years earlier than the Government had initially announced.
The review by John Cridland, former Director-General of the Confederation of British Industry, suggests that the state pension age should now be raised to 68 between 2037 and 2039
The Cridland report suggests that an increasing number of older people from the Baby Boomer generation, coupled with a rise in life expectancy, are the reasons for the suggestion.
The report reads: "In 1948, when the modern State Pension was introduced, a 65-year-old could expect to live for a further 13½ years, or 23 percent of their adult life, assuming adult life starts at 20.
“In 1995, when the first changes were enacted to equalise State Pension age, a 65-year-old could expect to live for 18½ years, or 29 percent of their adult life.
“This had risen to around 21 years by 2007, or 32 percent of their adult life, when further legislation was introduced to increase State Pension age.
"Increased longevity is a triumph of improved health and better living standards."But an ageing population also presents us with some profound challenges.
“It means that if we are to be fair to our children and ensure our society continues to be able to care properly for older people, we need to ensure that people spend on average the same proportion of time over State Pension age.
"The Government intends to follow the recommendation John Cridland made in his independent review to increase the State Pension age from 67 to 68 in 2037–39, bringing it forward by seven years from its current legislated date of 2044–46.
“This is the fair thing to do. It is also the responsible course of action."
The decision will be subject to the current review, which is due to conclude in 2023.