A major update on state pension age changes has emerged, with suggestions that planned increases could now be reconsidered.
New life expectancy data may be set to alter the trajectory of the state pension age.
Speaking at a recent conference, Pensions Minister Torsten Bell hinted that the upcoming 2029 review may need to account for unexpected trends in longevity.
This comes as new data from the Office for National Statistics shows significant drops in life expectancy between 2021-2023 compared to previous years.
The state pension age is currently set to increase from 66 to 67 between 2026 and 2028. It is then scheduled to rise again to 68 by 2046.
Some experts have even suggested raising the pension age to 70 by 2040 to ensure financial sustainability of the system. These increases were planned based on previous projections of rising life expectancy.
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Recent ONS data reveals concerning trends in life expectancy across the UK.
Between 2021 and 2023, life expectancy at birth for men in England fell by 1.7 years compared to 2017-2019. For Welsh men, the decline was 1.1 years over the same period. Women experienced even steeper drops, with life expectancy falling by 1.9 years in England.
The decline was most pronounced for Welsh women, whose life expectancy decreased by 2.2 years. These significant reductions have triggered debate about the wisdom of raising the state pension age as previously planned.
Speaking at the Pensions and Lifetime Savings Association’s annual conference in Edinburgh, Bell clarified that life expectancy has not actually declined.
He said: “The rise in longevity is falling in that it’s not rising as fast as we would all like.” Bell described the situation as a “slowdown in the pace of progress” that still represents a setback and noted that the next state pension age review may need to factor in this lack of growth.
He emphasised this issue extends beyond pensions: “It’s not just a pensions issue. It’s about our health system; it’s a big problem for the country.”
Recent ONS data reveals concerning trends in life expectancy across the UK.
The full basic state pension is currently worth £169.50 per week for men born before April 6, 1951 and women born before April 6, 1953.
The new state pension stands at £221.20 per week for men born on or after April 6, 1951 and women born on or after April 6, 1953.
To receive any state pension, people must have at least 10 qualifying years on their National Insurance record. Usually, 35 qualifying years are needed to receive the full rate.
People can check when they’ll reach state pension age using a tool on the Government website. This service helps users verify their state pension age, Pension Credit qualifying age, and eligibility for free bus travel.
To use the tool, individuals need to prove their identity through Government Gateway. Those who haven’t used Government Gateway before can register for the service.
The next state pension age review, as required by the Pensions Act 2014, will need to consider the latest life expectancy data.