The government has announced it will no longer raise the state pension age to 68.
It said that since the 2017 State Pension age Review was undertaken, the rate of increase in life expectancy has slowed.
In the 2014-based projections that informed the 2017 Review, life expectancy at age 65 was projected to reach 27.3 years by 2060, whereas in the latest 2020-based projections it is projected to reach 24.4 years.
There were 280 pensioners for every 1000 people of working age as of 2020. This will increase rapidly from the 2030s and will reach levels never seen before by 2070, where the ratio is projected to be 393 pensioners per 1,000 people of working age.
The Government plans to have a further review within two years of the next Parliament to consider age 68.
Director of Policy and Communications at Independent Age, John Palmer said:
“We welcome the conclusions of the review of the State Pension Age and the decision announced by the government today. Many people can breathe a sigh of relief for now as there won’t be an imminent speeding up of plans to increase the pension age to 68. We know that previous changes to the State Pension age resulted in increased poverty among people left behind. Bringing forward the rise to 68 would have meant more people struggling financially in their mid 60s and beyond. At a time when Independent Age is hearing from people facing significant financial hardship, and when nationally more than two million older people are in poverty in the UK, we must avoid policy changes that result in more people being in this serious situation.
“However, the pension age is still rising, and the Government can revisit its timetable and may decide to bring the increase forward at any point. The last time the State Pension age rose, poverty in later life increased. History cannot be allowed to repeat itself.
“There are measures the Government can take to lessen the impact of future rises on people in financial hardship, including those unable to work in the years before retiring due to illness or caring responsibilities. For example, the Government should allow people in financially disadvantaged positions to access Pension Credit or other enhanced support one or two years before they reach their State Pension age. The Government must explore these options now – 1 in 4 people aged 60-64 are currently in poverty.
“If the Government decides to bring forward the rise to 68 in the future, it should avoid any changes that would intensify the hardship many people are going through. Poverty among people in later life has risen in the last 10 years, it would be a tragedy if it continues to rise.”
