The Government has announced it it raising state pension age again for everyone currently aged under 47.Work and Pensions Secretary David Gauke accelerated by seven years the lift in state pension age from 67 to 68.It means the increase in pension age will now come into force from 2037 and not 2044, as stated in legislation. The major shift, which will save the Government billions of pounds in coming decades, was the central recommendation an review former CBI chief Sir John Cridland.
Mr Gauke told MPs the Government was determined to deliver ‘dignity and security in retirement, fairness across the generations and certainty people need to plan for their old age’. He told’This is about Government taking responsible action in response to demographic pressures.
‘That is why I am today announcing Government’s intention to implement the key recommendation of Cridland review and increase the state pension age from 67 to 68 over two years from 2037.’This brings forward increase by seven years from its legislated date of 2044-46 in line with the recommendation by John Cridland following careful consideration of the evidence on life expectancy, fairness and the public finances.’ Mr Gauke told on average, people would still receive the state pension for an average of 22 years.
Labour and the SNP both told they opposed increasing the retirement age above 66.Shadow work and pensions secretary Debbie Abrahams told ‘This is an astonishing continuation of austerity that means 34 million people will work longer than under Labour’s plans.
‘The latest research shows that working people in some places will now fall ill ten years before receiving their state pension under Tories’ new plan and just days ago, evidence emerged showing that increases in life expectancy are stalling.’Indeed, most pensioners will now face what has been described as a ‘toxic cocktail’ of ill health throughout their whole retirement.’We cannot allow this Government to push people to work longer and longer to pay for its failed austerity agenda.’That’s why Labour will leave state pension age at 66, while we look again at the emerging evidence, with a view to guaranteeing a secure and healthy retirement for the many, not just few.’ The Department for Work and Pensions said that the modern State Pension was introduced in 1948, a 65 year’s old could expect to spend 13.5 years in receipt of it 23 % of their adult life.This has been increasing ever since. In 2017, a 65 year’s old can now expect to live for another 22.8 years, or 33.6 % of their adult life.
Caroline Abrahams, Charity Director at Age UK, told “In bringing forward a rise in State Pension age by seven years, Government is picking the pockets of everyone in their late forties and younger, despite there being no objective case in Age UK’s view to support it at this point in time.’Indeed, it is astonishing that this is being announced the day after new authoritative research suggested that long term improvement in life expectancy is stalling.’For people in midlife and younger their State Pension may seem a lifetime away but the fact is that change announced today will have a real impact on them later in life.’