Cost saving

Pension age may rise to 68 earlier than planned

Older worker
Workers may have to work into their 70s to collect their state pension

The state pension age could rise to 68 earlier than expected as the Treasury seeks to save billions of pounds.

Current plans are for the retirement age to increase to 67 by 2028 and 68 by 2039. But this could be brought forward to the mid-2030s.

There is also talk in Whitehall of making those just entering the workforce to wait until their 70s to collect their state pension as they link the pension age with life expectancy, according to The Telegraph.

Insiders say Boris Johnson, Liz Truss and Rishi Sunak were all in favour of bringing the advanced retirement age forward.

But Conservative MPs are said to be uneasy about the proposal and are continuing to be targeted by campaigners such as the Women Against State Pension Inequality (WASPI) group who say they were not properly informed about plans to raise the retirement age for women.

Sir Steve Webb, a partner at LCP who was the pensions secretary under David Cameron, said: “It is tempting for the Treasury to see increases in state pension ages as ‘easy money’, with tens of billions of pounds of savings available.”

However, he said the changes to life expectancy, which were expected when this issue was last reviewed, have not materialised.

The Department for Work and Pensions said: “The Government is required by law to regularly review the state pension age and the second state pension age review is currently considering, based on a wide range of evidence including latest life expectancy data and two independent reports, whether the rules around state pension age remain appropriate. The review will be published in early 2023.”

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