Third State Pension age review: independent report call for evidence - published today

SnowMan

The government announced the launch of the third review of State Pension age in July 2025. This review will consider whether the rules around pensionable age are appropriate, based on the latest life expectancy data and other evidence.
As set out in the Pensions Act 2014, this review will consider evidence from 2 reports:

- an independent report, led by Dr Suzy Morrissey, on specified factors relevant to the Review of State Pension age

- a report from Government Actuary’s Department (GAD) to examine the latest life expectancy projections data

A call for evidence document in relation to Dr Suzy Morrisey's independent report has been published today. See the 'Third State Pension age review: independent report call for evidence' at 

https://www.gov.uk/government/collections/third-state-pension-age-review

Just posting this for anyone who is interested

JoeCrystal

Thanks! I was about to do the same! For anyone curious, here are the questions below:   Still in reading the whole document atm.

4.1 Life Expectancy 

a. What are the advantages and disadvantages of linking State Pension age to life expectancy? 

b. How would linking State Pension age to life expectancy impact upon intergenerational fairness?

4.2 Sustainability 

c. What role, if any, should State Pension age have for managing the cost of the State Pension in the longer term? 

d. What are the advantages and disadvantages of using State Pension age to manage the cost of the State Pension in the longer term?

e. What other factors relating to sustainability should the Government consider when determining State Pension age? What are the advantages and disadvantages of using these factors? 

4.3 Automatic Adjustment Mechanisms 

f. What are the advantages and disadvantages of using Automatic Adjustment Mechanisms to make changes to State Pension age (i.e. if a certain factor changes, State Pension age is automatically increased or decreased as a result). 

g. What factors could be considered for use in an Automatic Adjustment Mechanism, and why?

4.4 Factors for setting State Pension Age 

h. What other factors do you think the government should consider when making decisions regarding State Pension age?  What are the advantages and disadvantages of using these factors?  

i. Which of these factors (life expectancy, sustainability and other factors) do you think are most important for the Government to consider when making decisions regarding State Pension age, and why? 

j. How might changes to State Pension age impact people differently? Which groups of people, regions or nations may be most impacted by changes to the State Pension age, and why?

Beeblebr0x

We may be living longer but are we living healthier in old age? 

DE_612183

we all know the result will be adding on a couple of years to the SPA...

squirrelpie

And what effects do differences in life expectancy in different parts of the UK have? (I assume nobody wants to vote for an earlier start date for people who smoke )

MeteredOut

DE_612183 said:

we all know the result will be adding on a couple of years to the SPA...

Most likely linked to life expectency, so they don't have to go through the whole process in future (the Automatic Adjustment Mechanisms).

SnowMan

MeteredOut said:

DE_612183 said:

we all know the result will be adding on a couple of years to the SPA...

Most likely linked to life expectency, so they don't have to go through the whole process in future (the Automatic Adjustment Mechanisms).

The original idea following the Turner report was that SPA would be automatically set based on the assumption that someone would spend one third of adult life time (which meant over age 20) in state pension retirement.  

Because that subsequently was giving the 'wrong' answers they started to reduce the one third percentage so that semi-automatic idea failed at the first hurdle.

It isn't a sensible method anyway because they are using cohort life expectancies and that involves a guess as to how mortality will change in the future. As the rate of mortality improvements (or worsening) is completely unknown and so can only be guessed at, it is completely subjective. So the mechanism isn't really automatic as it all boils down to that mortality improvement guess as to whether SPA increases or not.

It's not surprising that the 8 countries using Automatic Adjustment Mechanisms detailed in the documents published today base it on period life expectancy. Period life expectancies use mortality rates from a single year (or group of years) and assume that those rates apply throughout the remainder of a person's life. So no guesswork is required.

If they are going to switch to period life expectancy and introduce a credible Automatic Adjustment Mechanism then the starting point for that Automatic Adjustment Mechanism is itself completely arbitrary. After that it could in theory become automatic (if you ignore the fact that political parties like to meddle especially if the automatic mechanism doesn't give them the answer they want).    

SnowMan

Beeblebr0x said:

We may be living longer but are we living healthier in old age? 

This is what the ONS say about that. It's been going down recently after a period of increases.
https://www.ons.gov.uk/peoplepopulationandcommunity/healthandsocialcare/healthandlifeexpectancies/bulletins/healthstatelifeexpectanciesuk/between2011to2013and2021to2023#data-on-healthy-life-expectancy-for-local-areas-of-england-and-wales-between-2011-to-2013-and-2021-to-2023

NickPoole

I think they should abandon it, freeze retirement age and start to work on a proper fair taxation regime and redistribution of wealth.

Yes, we are living longer than 1946 or whenever but the country is infinitely wealthier too. It's just the increase in wealth has all gone into a few hands.

dunstonh

I think they should abandon it, freeze retirement age and start to work on a proper fair taxation regime and redistribution of wealth.

fair in whose eyes?

Why should wealth be distributed to those who have not earned it?

NickPoole

dunstonh said:

I think they should abandon it, freeze retirement age and start to work on a proper fair taxation regime and redistribution of wealth.

fair in whose eyes?

Why should wealth be distributed to those who have not earned it?

Well, let's not politicise this. My point is that country is getting wealthier but the services and benefits we get as citizens aren't. That's because the money is concentrated in too few hands and not fairly taxed.

So we need to find a system that is fairer in the eyes of enough people that they'd vote for it! I doubt the Duke of Westminster or whoever thinks there is anything wrong with the system and is happy to see state pension age head off into the 80s.