The Government State Pension Age Review
The United Kingdom’s Government State Pension Age could rise to 68 by the end of the 2030s, according to recent reports. The Sun newspaper claims that a review into whether the rules around the Government state pension age are still appropriate will be published early this year, and that it will recommend bringing forward the planned increase from 2046 to an earlier date. This could affect millions of people who were born in the 1970s, who may now have to work for longer than they had anticipated.
Balancing act for the government
Currently, the Government state pension age is 66, and it is set to rise to 67 by 2028. The planned increase to 68 was not due to happen until 2046, but the upcoming review may recommend that it be brought forward. The move is seen as a way to help the UK economy by supporting an ageing population.
Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, commented that the government is facing a “tricky balancing act” with the state pension, as there are fewer working age people to support an increasing ageing population, and costs are enormous. However, she also noted that many people simply may not be well enough to work until age 68.
The Government state pension age versus other pension entitlements
A Department for Work and Pensions spokesperson said that no decision has been taken on changes to the Government state pension age, and that the government is required by law to regularly review the state pension age. The second Government State Pension Age Review is currently considering whether the rules around state pension age remain appropriate, and the review will be published early this year.
It’s important to note that nothing has been confirmed yet, and that the government is duty-bound to regularly review the state pension age. The latest review is expected to be published by 7 May this year. However, the Sun newspaper has reported that the Chancellor, Jeremy Hunt, may announce the move as early as the 15 March budget.
Phased increase to 67 and 68
The state pension age is the earliest age at which an individual can start getting the state pension. It may be different from the point you can start receiving other pensions, such as any workplace-related entitlement. For people reaching state pension age now, it will be 66 for both men and women. For those born after 5 April 1960, there will be a phased increase in state pension age to 67, and eventually 68.
Speculation of a move to 2037-2039
The state pension age is due to rise from 66 to 67 by 2028. The next increase, to 68, is not due to happen until between 2044 and 2046, affecting those born after April 1977. However, there has often been speculation that this could be brought forward. An official review in 2017 concluded that the next report should consider whether the increase to 68 should be moved to 2037-2039.
Potential financial difficulties for affected individuals
If the plan goes ahead, it could have a significant impact on millions of people, many of whom may already be struggling financially. The full “new state pension” for those who became pensioners after 6 April 2016 is £185.15 a week, and having to wait longer for this could cause financial difficulties for many people.
Government’s publication of the review results and implications for the UK’s ageing population.
It’s important to keep in mind that this is just a report and nothing has been confirmed yet. However, the government will be publishing the results of the latest review soon, and it will be interesting to see what they recommend and what the implications will be for the UK’s ageing population.
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