Retirement age is currently 66 for both men and women. It is due to rise to 67 during the period 2026-2028. Retirement age dictates not the age for receiving State Pension but for other 'above working age' benefits like Winter Fuel Payment, Attendance Allowance and Pension Credit.
The government has launched a consultation about retirement age including whether it should go higher still. The Pension Act 2014 requires the government to review the State Pension age every 6 years.
Questions asked include-
'3.1Intergenerational Fairness:
As people are living longer, how do we ensure the costs of State Pension are shared fairly across generations?
What factors relating to intergenerational fairness should be considered when determining the State Pension age?
Is it reasonable to give people a fixed period of notice for State Pension age changes, and if so what period?
3.2 Changes in the Nature of Work:
How have changes to the types of jobs people do affected working lives?
What are the anticipated future changes to the workplace? How could this impact on people’s working lives?
What factors do people consider when making decisions about when to retire?
3.3 Sustainability and Affordability:
What is the most sustainable and affordable way of managing the cost of State Pension in the longer term? What are the advantages and disadvantages of potential options?
3.4 Metrics for Setting State Pension Age
Is it reasonable for people to expect to spend a fixed proportion of their adult life in receipt of State Pension?
Are there options for taking account of differences in circumstances when setting State Pension age in future? What are the advantages and disadvantages of these options, and how could they operate within the current pensions framework?
How can we best take into account the sensitivity of the life expectancy projections when considering an appropriate State Pension age for the future?
Are there other metrics which are relevant or more suitable to help determine State Pension age in future, and if so, what metrics?
What factors do other countries consider when determining State Pension age?' Book now for our updated–Benefits for Older People 2022 course.