personal finance

How would a state pension age rise to 75 affect you? THIS region of UK could suffer most


The state pension age is currently increasing, with it set to reach 66 by October 2020. Further increases are planned, with it set to rise to 67 between 2026 and 2028, according to the government timetable. Under current law, the state pension age is due to rise to 68 between 2044 and 2046. However, following a 2017 review, the government announced plans to bring this forward, to between 2037 and 2039.

A new report by the Centre for Social Justice (CSJ) has proposed accelerating the plans.

According to the report, the major overhaul has been suggested in order boost the UK economy.

Under the think tank’s proposal, the state pension age would rise to 70-years-old by 2028 – which is less than 10 years away.

The CSJ also suggesting raising the age again, to 75, by 2035.

Tom Selby, senior analyst at AJ Bell, has commented on the suggestion, having taken a look at the official life expectancy data of men and women in the UK.

And, according the AJ Bell, the average baby born between 2012 and 2014 in Blackpool would never receive the state pension if the CSJ proposal was implemented – with these males having a life expectancy of 74.7 years.

Mr Selby said: “While raising the state pension age to 75 might save the Exchequer vast amounts of money, it would be the poorest regions of the UK, where life expectancy tends to be lower, that would suffer the most.

“Clearly decisions about how much to spend on the state pension are a difficult political balancing act but setting the age at a level the average Blackpool-born boy would never reach feels like a step too far.

“In fact recent data points to a sustained slowdown in life expectancy improvements in recent years, so any future changes to the state pension need to take this into account.

“Of course this slowdown may simply be a blip and comes after decades of unbroken improvements, but enacting any change in policy without first understanding this trend would be deeply irresponsible.”

He continued: “Although it is highly unlikely this proposal would be adopted by any political party – or certainly any party with an interest in getting elected – it emphasises the point that state pension policy remains at the whim of politicians.

“If recent evidence is any guide, savers need to prepare for the possibility the state will provide them with less and plan accordingly.”

Andy Cook, CSJ chief executive, said of the proposal: “Working longer has the potential to improve health and wellbeing [and] increase retirement savings…

“Right now, we are not doing enough to help older people stay in work, and the state pension age doesn’t even closely reflect healthy working life expectancy…

“By increasing the state pension age, we can help people stay in gainful and life-enhancing employment while also making a sound long-term financial decision.”

A spokesperson for the DWP told Express.co.uk: “Everyone’s State Pension age is unique to them and in 2017 we raised the future retirement age to 68 so that it is sustainable now and for future generations.

“We’re creating opportunities for people of all generations with record employment.”

Gill Moffett of Independent Age said: “It could particularly affect some of the most vulnerable people in our society, like older people who can’t work due to illness, disability or caring responsibilities.”

Helen Morrissey, pension specialist at Royal London said: “While such proposals will undoubtedly save money, raising state pension age so quickly will cause huge issues for many retirees who will not have been given adequate time to prepare.

“We need to give careful thought to what kind of jobs people in their 70s are able to do and while some people will be able to work on for longer others simply won’t be able to.

“These people will face severe financial hardship if they have not saved enough into a pension to cover the years between leaving work and claiming state pension.

“The government needs to think carefully before taking such drastic action.”



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