This second review will consider whether the rules around pensionable age are appropriate, based on the latest life expectancy data and other evidence
The Department for Work and Pensions (DWP) recently launched a second review of the State Pension age, which is now 66 for both men and women across the UK.
The State Pension age is regularly reviewed to make sure that it is affordable and fair as people are living longer and spending a greater proportion of their adult life in retirement than in the past.
The DWP has previously explained the reason for the review is because ‘when the State Pension was introduced in 1948, a 65-year-old could expect to spend 13.5 years receiving the benefit, around 23 per cent of their adult life’.
However, this has been increasing ever since and it is now estimated that a 65-year-old can expect to live for another 22.8 years, or 33.6 per cent of their adult life in retirement.
The latest projections from the Office for National Statistics (ONS) show that the number of people over State Pension age in the UK is expected to grow by a third to 16.9 million in 2042.
This second review will consider whether the rules around pensionable age are appropriate, based on the latest life expectancy data and other evidence.
State Pension age is now 66 and two further increases are currently set out in legislation.
The first review of State Pension age was undertaken in 2017 and concluded that the next review should consider whether the increase to age 68 should be brought forward to 2037-39 before tabling any changes to legislation.
The DWP said: As the number of people over State Pension age increases, due to a growing population and people on average living longer, the government needs to make sure that decisions on how to manage its costs are robust, fair and transparent for taxpayers now and in the future.
It said: It must also ensure that as the population becomes older, the State Pension continues to provide the foundation for retirement planning and financial security.