State pension age may need to rise again, warn government actuaries

23 Mar 17

People currently under the age of 30 might have to wait until 70 to qualify for a state pension, if ministers adopt a report from the government’s risk assessment department.

The Government’s Actuary’s Department has suggested a scenario that increases the pension age from 69 to 70 over two-years in the 2050s.

But another report – by former CBI director general John Cridland, also released today- proposes the state pension age should rise from 67 to 68 between 2037 and 2039.

This would bring changes forward seven years earlier than the existing timetable.

The government will consider both reports in its review of the state pension age, which is due in May this year.

GAD was asked to look at two scenarios; one for an adult receiving a state pension for 32% of their projected adult life and another for 33.3%.

In the 33.3% scenario, the state pension age would rise from 67 to 68 over two years in the late 2030s or early 2040s, and from 68 to 69 over two years in the 2050s.

Under the 32% scenario, the age would increase from 67 to 68 over a two-year period from 2028 to 2030, 68 and 69 in the early 2040s and 69 to 70 over two years in the 2050s.

Cridland’s report says state pension age should not increase more than one year in any 10-year period and that all employers should have elder care policies in place.

He also suggests people should be able to access a mid-life career MOT and review and recommends scrapping the triple lock after the current parliament.

Under this policy, pensions increase by the rate of inflation, earnings or 2.5% - whichever is greater. No new changes to the state pension age will come into effect before 2028.

The government has pledged to give 10 years notice of any changes.

Did you enjoy this article?

AddToAny

Have your say

Top