Government backs Cridland Review proposal to raise state pension age to 68 by 2039 - seven years earlier than under current plans
State pension system would cost extra £19.5bn in today’s prices without reform
Minority Government likely to face a battle to get controversial measure through the House of Commons
Tom Selby, senior analyst at AJ Bell, comments:
“The Government simply had to grasp the nettle on state pension reform. While improvements in life expectancy have stalled in recent years, over decades the state pension system has become increasingly unaffordable. To put it simply, people are living a lot longer but the age at which they receive the state pension has barely moved in over a century. Failing to address this now would only store up problems for future generations.
“The Government could well face a serious battle to get this unpopular measure through the House of Commons, however. Labour has already indicated it will oppose such reform and, with a wafer thin majority, only a few rebellious MPs would leave the plans on a political knife edge.
“But even Jeremy Corbyn can’t hold back the tide of our rapidly ageing society and it would be hugely irresponsible not to get a grip on this today.”
Source: ONS