The government has announced its intention to accept the key recommendation of the Cridland Review and increase the State Pension Age from 67 to 68 over two years from 2037. This is 7 years 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.
Later Life Ambitions recognises the need to increase the State Pension Age to ensure the continued sustainability of the system for generations to come. As life expectancies increase, it is fair that the state pension age should be adjusted to reflect this. However, the Government must ensure that further rises in the State Pension Age take into consideration differences in life expectancy across the UK and different occupations. Furthermore, the government must communicate these changes directly to those affected, ensuring that people have sufficient time to plan for their new pension age.
We want to see the government going further and address a number of other pressing pension issues. For example, we would like to see a review of the two-tier system between the old and the new state pension; the development of a Household Inflation Index (HII) to better reflect the inflation experiences of households; and the introduction of measures to improve confidence in pension savings.
We welcome the Government’s commitment to “deliver dignity and security in retirement, fairness across the generations, and the certainty that people need to plan for old age.” The State Pension triple-lock is also an important part of this. It ensures that pensioner income is not eroded by the gradual increase in the costs of living, and helps those pensioners who are struggling to survive. Later Life Ambitions will continue to campaign for this, and we will work with the government to ensure the continued sustainability of the pension system.