Government launches second review into state pension age

The government has launched a second review into the state pension age via a consultation launched yesterday.

Baroness Neville-Rolfe has been appointed to prepare an independent report and make recommendations to the government on it.

She will look at what metrics should be used when setting the state pension age in future.

The call for evidence will gather information to inform the independent report from a number of sources.

This could include experts in the fields longevity and aging, older people and labour market, intergenerational fairness and the fiscal challenges associated with an aging population, who will be particularly interested.

The Pensions Act 2014 requires the government to review the state pension age every six years.

This consultation closes at 11:45pm on 25 April 2022.

Reacting to the review, Canada Life technical director Andrew Tully said: “Any debate around the increase to the state pension will inevitably be controversial. Life expectancy varies hugely across the UK, so any change isn’t straightforward.

“People living in poorer areas are also much more likely to remain in work while waiting to become eligible for the state pension, so any change will inevitably have a more fundamental impact on some.

“That being said, allowing access at different ages would be extremely complex. All in all, there are no easy answers and it needs to form part of a wider debate around levelling up, increasing life expectancy across all regions in the UK, and increasing private pension savings through auto-enrolment.

“Clear communication of any proposed changes will be essential for success, ensuring people understand how they will be impacted and with plenty of time to plan for their future.”