The UK government have released the following:
- State Pension age rise to 67 will take place as planned between 2026-2028.
- Review within two years of next Parliament to reconsider rise to age 68.
- Delivers on Government responsibility to ensure the State Pension remains sustainable and fair across the generations.
The Government has confirmed the State Pension age will rise to 67 by the end of 2028, following a review published today.
After carefully considering expert evidence, including two independent reports, the Secretary of State for Work and Pensions has concluded the planned pension age rise from 66 to 67 for those born after April 1960 remains appropriate.
The Pensions Act 2014 requires the Secretary of State for Work and Pensions to regularly review State Pension age. To inform this Review, two independent reports were commissioned – analysis from the Government Actuary based on life expectancy projections and the proportion of adult life spent in retirement, and findings from Baroness Neville-Rolfe which considered relevant factors including life-expectancy trends.
As the number of people over State Pension age increases, the Government must ensure it remains sustainable and fair for current and future generations.
The Government plans to have a further review within two years of the next Parliament to reconsider the rise to age 68.
This gives the Government appropriate time to take into account evidence which is not yet available on the long-term impact of recent challenges, including the Covid pandemic and global inflationary pressures. These events bring a level of uncertainty in relation to the current data on life expectancy, labour markets and the public finances.
This will ensure that the Government is able to consider the latest information to inform any future decision on the State Pension age. This will include life expectancy and population projections updated with 2021 Census data and the latest demographic trends, the economic position and the impact on the labour market of the recently announced package of measures to tackle inactivity.
Given the wide-ranging impacts of changing the State Pension age, it is important to take the time to get any changes right.
Secretary of State for Work and Pensions Mel Stride said:
It’s essential the State Pension remains sustainable and fair across the generations. Our balanced approach will help achieve this and ensure we continue to provide security and dignity in retirement for millions of people across the country.
The Government remains committed to the principle of providing 10 years notice of changes to State Pension age, enabling people to plan effectively for retirement. All options for the rise to the State Pension age from 67 to 68 that meet the 10 years notice period will be in scope at the next review.
The accompanying State Pension Age Review documents can be found here: State Pension Age Review 2023.