State Pension Age Review launches - considering whether to bring forward age 68 rise

m_c_s

State Pension age is currently 66 and two further increases are currently set out in legislation: a gradual rise to 67 for those born on or after April 1960; and a gradual rise to 68 between 2044 and 2046 for those born on or after April 1977. 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 review was initiated yesterday.
https://www.gov.uk/government/news/second-state-pension-age-review-launches

westv

I won't currently be affected by any future changes as I'll be 67 in 2030 but my wife is 67 in 2037 so she could be.

jamesd

Since peak costs for the state pension as a percentage of GDP are currently forecast to be around 2050 it seems fairly sensible to with plenty of notice make the change and reduce the magnitude of the peak a bit.

Toddy2

So unfair as mine and countless others LGPS is linked to the state retirement age.

jamesd

Given that a big part of the increase is increasing life expectancy, that is likely to still mean that you're going to get both the state pension and the LGPS for longer in retirement.

GibbsRule_No3.

https://www.bbc.co.uk/news/business-59698732

Story this morning is suggesting they need to rethink and delay raising the age due to people not now starting to live longer.  I did note though, they still posted the new pension per week, without saying that it is staggered if you had opted out COPE.  So people reading would think everyone gets the £179 a week.

hugheskevi

It is interesting to look at the longevity assumptions made by funded Defined Benefit pension schemes, as published by the Pension Regulator each year, and in particular the detailed longevity assumptions in the annex. Note that these assumptions are the result of professional actuaries dealing with membership of Defined Benefit schemes, which will be different to the characteristics of the wider population upon which decisions about State Pension will be made (eg, DB members tend to be higher paid, usually healthier on average as they by definition were able to work at least some of their career, but in some cases this won't be true, as schemes with members in hard manual roles will have their own characteristics).

The tranches correspond to years, with tranche 14 being the most recent data. Schemes are valued every 3 years, so tranches 14, 11, 8, 5, and 2 will contain the same schemes, although some will have wound-up.

Life expectancy at 65 peaked about 6 years ago and has been reducing since then, and is largely unchanged over the last 12 years. The last review of State Pension age was undertaken in 2017, so would have been looking at data from that year and maybe a year or two earlier.

Note, I highlighted median in the tables below from the report for visual ease.

sheslookinhot

GibbsRule_No3. said:

https://www.bbc.co.uk/news/business-59698732

Story this morning is suggesting they need to rethink and delay raising the age due to people not now starting to live longer.  I did note though, they still posted the new pension per week, without saying that it is staggered if you had opted out COPE.  So people reading would think everyone gets the £179 a week.

It does say “the full new flat-rate state pension” is £179.6 a week.

sevenhills

Life expectancy at 65 peaked about 6 years ago and has been reducing since then, and is largely unchanged over the last 12 years. The last review of State Pension age was undertaken in 2017, so would have been looking at data from that year and maybe a year or two earlier.

The act of Parliament to increase the state pension age was brought in 2006/7, so it was based on a life expectancy of 78, life expectancy has now increased to 81

The state pension was never intended to support a large section of the population, that should be met by private pensions.

ex-pat_scot

sevenhills said:

Life expectancy at 65 peaked about 6 years ago and has been reducing since then, and is largely unchanged over the last 12 years. The last review of State Pension age was undertaken in 2017, so would have been looking at data from that year and maybe a year or two earlier.

The act of Parliament to increase the state pension age was brought in 2006/7, so it was based on a life expectancy of 78, life expectancy has now increased to 81

The state pension was never intended to support a large section of the population, that should be met by private pensions.

it was based on projections for future mortality and morbidity, not the actual values at that time.
In general, the increase in expectancy has been slowing, not expectancy itself.