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State pension age to hit 68 in 2038

The government has announced that people will have to wait until they are 68 to qualify for the state pension from 2037.

Under the proposed new timetable, the state pension age will increase to 68 between 2037 and 2039, earlier than the current legislation which sees a rise between 2044 and 2046.The change will affect everyone born between 6 April 1970 and 5 April 1978 – visit our state pension age calculator[1] for your state pension age.

Government abides by the Cridland Review

Today’s announcement agrees with the timetable set out by John Cridland CBE in March 2017, which proposed bringing forward the increase in state pension age to 68 between 2037 and 2039Mr Cridland’s review highlighted that under the previous timetable, by 2036/37 annual spending on the state sension would have increased by 1% of GDP on 2016/17, equivalent to ?20bn in today’s terms – or a rise in taxation of ?725 per household.

Planning ahead for retirement

Secretary of State for Work and Pensions David Gauke said: ‘Since 1948 the state pension has been an important part of society, providing financial security to all in later life.’As life expectancy continues to rise and the number of people in receipt of state pension increases, we need to ensure that we have a fair and sustainable system that is reflective of modern life and protected for future generations.’Combined with our pension reforms that are helping more people than ever save into a private pension and reducing pensioner poverty to a near record low, these changes will give people the certainty they need to plan ahead for retirement.’

References

  1. ^ state pension age calculator (www.which.co.uk)

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