The Government currently plans to increase the state pension age to 67 in 2028, and again up to 68 no later than 2046. Many people have argued that
The Government currently plans to increase the state pension age to 67 in 2028, and again up to 68 no later than 2046. Many people have argued that the changes should not go ahead as planned.
Dennis Reed, Director of Silver Voices, believes any changes to the state pension age should be put on the back burner.
“This review needs to be put in cold storage,” he said.
“While life expectancy was rising sharply there was at least a case for raising the state pension age.
“However, life expectancy now is flat-lining, if not edging down slightly.
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However, not everyone agrees that the planned state pension age hikes should be done away with.
In fact, some have argued that the changes need to be brought forward instead.
The International Longevity Centre (ILC) believes the state pension age increases to 67 and 68 may need to be accelerated to manage the cost to the Government of providing state pension income.
The ILC found that to maintain the current proportion of the population living up to and beyond state pension age, the state pension age would need to increase to 68 by 2034.
Further increases would then be required, taking the state pension age to 68 by 2038 and 70 by 2042.
Increases to the age would have a huge impact for people who are waiting to receive their state pension entitlement.
The full new state pension is currently valued at £179.60 a week, providing £9,339.20 for a full year.
The full basic state pension is worth £137.60 per week, or £7,155.20 for a year.
The state pension increases every year to keep pace with the cost of living, meaning future pensioners should get more income each week than those who are already retired.
For example, the state pension will rise by 3.1 percent this year, in line with inflation.
This means pensioners will get an additional £5.55 per week if they receive the full new state pension, giving them £185.15 a week.
A state pension age review is currently ongoing, and is expected to be concluded by 2023.
A DWP spokesperson previously told Express.co.uk: “The state pension continues to provide the foundation for retirement planning and financial security in older age.
“The Government is required by law to regularly review state pension age and recently launched the second state pension age review. The review will consider whether the rules around state pension age are appropriate, based on a wide range of evidence including latest life expectancy data.”