Reviewing state pension age early 2023

michaels

hugheskevi said:

michaels said:

m_c_s said:

In 2014, Parliament legislated to increase the State Pension Age from 66 to 67, with the change phased in between 2026 and 2028. It also required the Government to review the State Pension Age by May 2017 and at least every six years thereafter, having regard to life expectancy and to other relevant factors. Currently the move to 68 is set for between 2044 and 2046. 

The first state pension age review in 2017 pencilled in a rise to 68 that would begin in 2037 and be completed in 2039. This is not in law though. It is expected that the second review, which is under way and must conclude by 7 May 2023, will recommend that a move to 68 be pulled forward to start in 2037.

I have not seen any indication that the current (second) review is looking at the 67 date or any further changes over the next 10 years.

Seems 'unusual' to be pulling it forward when changes to life expectancy on which it is allegedly based have been much less positive than when it was first mooted....

As well as life expectancy, the other key variable is how long the Government considers is appropriate to spend above State Pension age - that was initially 33%, then reduced to 32%. This enables the Government to choose whatever age it wishes regardless of longevity changes, based on its beliefs about the appropriate amount of time spent in retirement.

This article is worth reading.

Thank you

TLDR for the article - the govt can simply fiddle the figures on the percentage of life to be spent in retirement on average or change the rules altogether and because it is complicated it is unlikely to be a big political issue; especially as at the moment all the data is already moving in the 'it will cost less than we thought' direction so they can make big savings merely by continuing to update the retirement age to what was originally mooted when life expectancy was forecast to grow strongly.