State pension age could balloon into mid-70s!

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02 Mar, 2016

State pension age could balloon into mid-70s!

The 2014 Pension Act requires the state-pension age to be reviewed during each parliament, with growing concerns that it could rocket into the mid-70s over the coming years!

deVere Group understands that the first reassessment is scheduled to take place, with CBI director general, John Cridland, appointed to oversee the process. The government has stated that overhauls could be made to the current retirement structure, to “help ensure that the state pension remains sustainable for generations to come”.

The quote is particularly vague and current workers are worried that changes could be made to the state-pension age which will see them work for longer in their lives. How much longer is up for debate, but Tom McPhail of Hargreaves-Lansdown has suggested that younger workers may find themselves waiting until their mid-70’s to access their pension.

He commented: “We fully expect state pension ages to go up faster than currently planned, and those joining the workforce today are likely to find themselves waiting until their mid-70s to get a payout from the state system”. He also said that increased life expectancy was putting a huge strain on state-pensions, with costs “spiralling out of control”.

Shadow work and pensions secretary, Owen Smith, also commented: “People are right to worry that the terms of this review may suggest that the Government is set to speed up rises in the state pension age, throwing into chaos the retirement plans of millions of British workers”.

deVere Group has previously reported that the government is already facing huge criticism over their decision to speed up the state-pension age for women, with some MPs commenting that these individuals are paying for the government’s failures.

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