The state pension age is regularly reviewed based on the projections for life expectancy with recent data suggesting earlier than expected hike could be delayed.
A state pension age increase poses a “big problem” for the country because UK life expectancy is “falling'”. The state pension age is regularly reviewed based on the projections for life expectancy with recent data suggesting earlier than expected hike could be delayed.
Speaking at the Pensions and Lifetime Savings Association’s (PLSA) annual conference in Edinburgh last week, Labour Party Pensions Minister Torsten Bell acknowledged the slower pace of life expectancy growth.
“The rise in longevity is falling in that it’s not rising as fast as we would all like,” Bell said. “It’s not just a pensions issue. It’s about our health system; it’s a big problem for the country,” he added.
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Bell described the situation as a “slowdown in the pace of progress”. Jonathan Cribb, an associate director at the Institute of Fiscal Studies (IFS), said: “The Government will shortly be considering whether to bring forward the following age rise to 68, which is currently scheduled for 2044.”
“It is poorer people in their mid 60s who are hit most by state pension age increases,” he explained. “They also often have little savings or private pensions to fall back on,” Cribb added.
He said: “We know that poverty rates rose substantially among those in their mid 60s following previous pension age increases.” The State Pension is designed to give you a regular retirement income from the government, even if you have other income or pensions.
After you’ve claimed it, it’s usually paid every four weeks, rather than the same date each month. You can currently take a private pension, including some workplace pensions, from age 55 (increasing to age 57 from 2028).
This means you might choose to retire before you can claim your State Pension. Equally, you can still claim your State Pension and carry on working. Your State Pension is calculated differently if you reached State Pension age before 6 April 2016, as you’ll claim the old State Pension with two parts.
Your State Pension isn’t paid automatically.