02 Dec, 2016
Government may raise state pension age to 70
The UK pensions age could increase again to 70, meaning tens of millions of people will be forced to work for longer, according to a former minister.
Steve Webb, the Liberal Democrat former Pensions Minister in the 2010 Coalition government said, the current government is considering a raise in the state pensions age by three years from its current upper limit of 67, which it is due to be implemented between 2026 and 2028.
Webb, currently Policy Director at asset manager Royal London, also said the move would affect tens of millions of young workers in their 20s who would not be eligible for a pension until they reach 70 from 2028.
He claims to have found the plans regarding pension-age rises buried in Department for Work and Pensions documents.
The moves comes as the government fights to cut back the escalating cost of pensions as people live for much longer than anticipated due to better healthcare. The pensions bill accounts for around 42% of the welfare budget, or £108bn.
The earliest age someone can start being paid their state pension is 65 for men, and 63 for women.
However, under current plans, this will level out for both sexes at 66 between 2018 and 2020, and reach 67 between 2026 and 2028.
The Department for Work and Pensions (DWP) has asked the Government Actuary's Department to outline the latest life expectancy assumptions over the decade or so ahead.
Former CBI director general Sir John Cridland is expected to issue an interim report in early 2017, aimed at ensuring the state pension remains affordable beyond 2028.
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