A UP in state pension age to 68 could be introduced after SEVEN years meaning Britons could have to work longer.
The age at which you can receive your pension is currently 66, and that number will increase to 67 by 2028.
An increase to 68 has been set between 2044 and 2046 – but that could happen sooner.
The government has published a review of pension scheme age could increase as early as 2037.
That means millions of Britons born in the 1970s may have to wait longer to access their pension.
The earlier increase will affect people born between April 6, 1970 and April 5, 1978.
Britons can retire at any age if they have enough savings and can get a private or workplace pension from age 55.
But they have to wait until they reach state pension age to receive the money they have saved by paying National insurance throughout their working life.
The state pension is now worth £179.60 a week and will increase to £185.15 next April – about £9,627 a year.
The Department of Work and Pensions (DWP) has released a review of the state pension Age will be considered if longer life expectancy means Britons should work longer.
The government must regularly review the state pension age and reporting on Baron Neville-Rolfe’s findings will have to be completed by May 7, 2023.
Any changes must still be written into law, and the review may find that current plans to change the age from 2044 are appropriate.
ONE previous review in 2017 said an earlier increase in 2037 should be considered in the review launched today.
‘Move the goalposts’
Becky O’Connor, head of pensions and interactive investor savings, said millions more may have to work longer before receiving their state pension as a result of the review.
“The idea of a long and enjoyable retirement seems to be in the history books,” she said.
She adds that “constantly moving goal columns” can affect people’s retirement plans.
Present retirement age 66 has arrived from last October and became equal for men and women for the first time.
But change means millions of women had to wait 6 years longer than expected for their state pension.
Ms. O’Connor, said: “Many people will spend most of their working life looking forward to retiring at 65. They have been disappointed before and are likely to be disappointed again.
“It’s no surprise that young workers today have little confidence in the state pensions available to them when they stop working, with many thinking they’ll work forever.”
Although life expectancy has increased over the years, the data shows that it has slowed and does not mean that people are always healthy enough to work.
Helen Morrissey, pensions and pensions analyst at Hargreaves Lansdown says that analyzing the latest longevity data as part of the review could “stop [an earlier rise] its tracking”.
“It will also look at other factors that make up the state pension age debate,” she said.
“This includes regional variation and should open up the debate about healthy life expectancy – the ability to keep working – and how it differs across the country.
“Someone can live to be 80 but not all of that time will be in good health and many will feel unable to work up to and beyond current state pension age.”
Recent data from Public Health England shows a Kensington man has an average life expectancy at birth of 84.2 and a healthy life expectancy of 61.3, she added.
Meanwhile, a man in Blackpool has a life expectancy of 74 but a healthy life expectancy of 53.7.
“Government must also balance this with meeting the ongoing huge costs of state pensions, ensuring the state pension remains sustainable over the long term while also monitoring changes in the state pension,” she said. working patterns and ongoing costs.
According to the Office for Budget Responsibility (OBR), the government’s annual bill for the state pension is £107.9 billion this year.
“There are huge inequalities in the health and consequent workability of 60-year-olds across the country,” Ms. O’Connor said.
“Average life expectancy has not increased recently and therefore does not provide the same justification as it did for continuously increasing the state pension age.”
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https://www.thesun.co.uk/money/17045538/wait-longer-retire-state-pension-age-rise-earlier/ Born in 1970? Millions could wait longer to retire as state pension age could rise SEVEN earlier