https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/569638/state-pension-age-review-dwp-letter-to-government-actuary.pdf
The study, along with an independent report by John Cridland, will inform the Government timetable for future rises in the state pension age.
Tom Selby, senior analyst at AJ Bell, comments:
“Rapid rises in life expectancy have already seen the Government set out plans to hike the state pension age for men and women to 67 in 2028. It’s worth remembering that this is just two years higher than when the state pension was created in its current form 80 years ago. At that time, people were only expected to draw their state pension for a few years – the average life expectancy for both men and women born in 2016 is over 90 years.
“If people keep living longer, that will put huge pressure on the public purse and could make further increase in the state pension age inevitable. Indeed, savers may face the prospect of waiting until their 70s to receive the state pension.
“This is all part of a broader societal shift from collective to individual responsibility for retirement provision, punctuated by the demise of gold plated defined benefit pensions. The state pension provides a decent bedrock upon which to build, but anyone who wants to retire early or receive an income of more than £155 a week will need to provide for themselves.”