The Government has announced a review of the state pension age, three years ahead of schedule.
The current state pension age is 66 and is set to rise to 67 between 2026 and 2028.
The Government says that without anny action tomorrow’s retirees are on track to be poorer than today’s.
The move comes as almost half of working-age adults are still saving nothing with low earners, some ethnic minorities and the self-employed least likely to be pension saving.
Announcing the review The Work and Pensions Secretary Liz Kendall said:
People deserve to know that they will have a decent income in retirement – with all the security, dignity and freedom that brings. But the truth is, that is not the reality facing many people, especially if you’re low paid, or self-employed.
The Pensions Commission laid the groundwork, and now, two decades later, we are reviving it to tackle the barriers that stop too many saving in the first place.
The review will consider whether the current state pension age is still appropriate, based on factors such as life expectancy.
