The Chancellor announced today that the state pension age will rise to age 67 between 2026 and 2028, with further increases "based on demographic evidence".Life expectancy at current state pension age (60-65) is improving by between 1.5 years and 2 years per decade. The state pension age rise announced today comes 7 years after the rise in state pension age from 65 to 66 starts in 2019. This is broadly in line with rising life expectancy. The table below illustrates future state pension ages if current longevity trends continue and state pension age rises every 7 years going forwards.
|
State Pension Age |
When rise starts |
Affecting people born after |
State pension age guide for people aged between |
|
66 |
2019 |
1953 |
51-58 |
|
67 |
2026 |
1960 |
44-51 |
|
68 |
2033 |
1967 |
37-44 |
|
69 |
2040 |
1974 |
30-37 |
|
70 |
2047 |
1981 |
23-30 |
|
71 |
2054 |
1988 |
16-23 |
|
72 |
2060 |
1995 |
9-16 |
|
73 |
2067 |
2002 |
up ro 9 |
John Lawson, Head of Pension Policy at Standard Life said, "State pension age looks like it has developed its own seven-year itch. At this rate, someone in their early-20s today will not receive their state pension until age 71 and someone aged 40 today will have to wait until they are 68 before they receive their reward for a lifetime of work or caring. People who want to take control of their own retirement age need to start a savings plan so that they can draw their income when they want - for example, someone aged 22 today would still be able to take £102 a week between age 65 and 71 if they saved just £23.50 a month from now on. The message is clear - if you want to control your retirement age, don't rely on the state, make your own plans."
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