Rise in State Pension age will happen earlier as life expectancy increases
Summary
The State Pension age will increase to 66 for both men and women six years earlier than originally stipulated as a result of longevity, as detailed in 'A Sustainable State Pension: When the State Pension Age will Increase to 66’ (Cm. 7956).
Since the first contributory pension was introduced in 1926, significant demographic changes have occurred in the UK. More people are reaching 65 than before and therefore, the Government has made a well-informed decision to bring forward the rise in State Pension age from 2026 to 2020.
The cost implications for maintaining the state pension are serious. The increased life expectancy means that, just for individuals reaching State Pension age in 2010, the costs would increase by £6.5 billion over the lifetime of that cohort.
Women's state pension age is currently rising from 60 to be equalised with men's at 65 by 2020. To enable an increase to 66, this timetable will be adjusted so that equalisation is reached in November 2018. The increase to 66 will then occur between December 2018 and April 2020 for both men and women.
The Department for Work and Pensions (DWP) concluded that the legislated timetable for proposed change will not have a disproportionate impact on any group compared to another.
This forthcoming increase in State Pension age contributes to gender equality as both men and women will qualify for retirement at the age of 66. By November 2018, the Department estimates 90% of both genders will be reaching State Pension age with a full basic State Pension.
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