Born in 1970s? Millions could wait longer to retire as state pension age could rise SEVEN years earlier
A RISE in the state pension age to 68 could be brought forward by SEVEN years meaning Brits could have to work longer.
The age at which you can can get the retirement cash is currently 66 and that's due to rise to 67 by 2028.
An increase to 68 has already been set out for between 2044 and 2046 - but that could take place earlier.
The government has unveiled a review of the state pension age that could see it rise as early as 2037.
It means millions of Brits born in the 1970s could face a longer wait to access their retirement cash.
An earlier rise would affect those born between born between between April 6 1970 and April 5 1978.
Brits can retire at any age if they have enough savings, and can access a private or workplace pension from the age of 55.
But they must wait until the state pension age to get the cash they've saved by paying National Insurance during their working life.
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The state pension is currently worth £179.60 a week and that will increase to £185.15 next April - around £9,627 a year.
The Department for Work and Pensions (DWP) has launched a review of the state pension age that will consider if longer life expectancy means that Brits should work longer.
The government must review the state pension age regularly and a report on its findings by Baroness Neville-Rolfe will have to conclude by 7 May, 2023.
Any change would still have to be written into law, and the review could find that the current plans to change the age from 2044 are appropriate.
A previous review in 2017 said that the earlier rise in 2037 should be considered in the review launched today.
'Moving the goalposts'
Becky O’Connor, head of pensions and savings at interactive investor, said millions more people could face having to work for longer before they get their state pension as a result of the review.
"The idea of a long, enjoyable retirement seems set to be consigned to the history books," she said.
She added that "continually moving the goalposts" was likely to affect people's retirement planning.
The current retirement age of 66 came in from October last year and became equal for men and women for the first time.
But the change meant millions of women were left waiting six years longer than expected for their state pension.
Ms O’Connor, said: "Many will have spent much of their working life expecting to retire at 65. They have been disappointed before and look set to be disappointed again.
"It’s no wonder today’s younger workers have little faith in the state pension being there for them at all when they stop work, with many thinking they’ll end up working forever."
While life expectancy has become longer over the years, data suggests that has slowed and also doesn't mean that people are always in good enough health to work.
Life expectancy changes
Helen Morrissey, pensions and retirement analyst at Hargreaves Lansdown said that analysis of the latest life expectancy data as part of the review could "stop [an earlier rise] in its tracks".
She said: "It will also consider other factors that feed into the debate on state pension age.
"This includes regional differences and should open the debate about healthy life expectancy – the ability to keep working – and how it varies hugely across the country.
"Someone might have a life expectancy of 80 but not all that time will be in good health and many people will find it impossible to work up to and beyond current state pension age."
Recent data from Public Health England showed a man in Kensington has a life expectancy at birth of 84.2 and a healthy life expectancy of 61.3, she added.
Meanwhile a man in Blackpool has a life expectancy of 74 but a healthy life expectancy of 53.7.
"The government must also balance this with meeting the enormous ongoing cost of the state pension, ensuring the state pension remains sustainable in the long term while keeping track of changing working patterns and ongoing cost," she said.
The government's annual bill for the state pension is £107.9 billion this year according to the Office for Budget Responsibility (OBR).
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Ms O'Connor said: “There are big inequalities in health and consequent ability to work for people in their sixties around the country.
"Life expectancy hasn’t been rising across the board recently and so does not offer the same justification it once did for endlessly increasing the state pension age.”
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