Iain Duncan Smith, the Work and Pensions Secretary, has indicated that the coalition government are to review the current plans to raise the state pension retirement age to 67 by 2036 and again up to 68 by 2046.
Mr Duncan Smith has suggested that the timetable for this rise in the state pension age, which was set by the previous Labour government, is too slow and the coalition government may bring the dates forward.
Although a decision on whether to change these plans has not yet been made, the Department for Work and Pensions (DWP) have indicated that they are considering using an automated mechanism to control the rise in the state pension age, to the dismay of charities in the UK.
Some campaigners have suggested that the government should announce the new plans as soon as possible as people will need to adjust their retirement plans to accommodate the changes, some of which may be quite substantial.
The plans to raise the state pension age were initially set by the Labour government. The coalition government announced that the state pension age for women was due to increase to 65 in 2018. This was to bring it into line with the state pension age for men. This relatively sudden change has previously been criticised as unfair as it gave many women little notice to change their plans for retirement.
The pension age for both men and women is then due to rise to 66 in 2020.
The Labour government had set a target of 2036 to then raise the state pension age to 67.
However, the indications are that the coalition government will bring this date forward a whole ten years to 2026.
The rise in the state pension age to 68 was also set a target of 2046, but the coalition government have suggested that this change and future changes may be linked to improvements in life expectancy.
Pensions minister Steve Webb has also added that the rises in the state pension age are currently too slow. He indicated that there have been significant increases in life expectancy and that the previous government had not sufficiently addressed the problems associated with it. He stated that bringing forward the planned dates to introduce the rise are crucial, adding that if the age is 67 by 2036, “we will be going backwards.”
Mr Webb said: “Everybody knows we are living longer. It is like an express train. I am even more convinced now than I was a year ago that we are running to stand still on all this stuff.”
Michelle Mitchell from the Age UK charity has suggested that independent advisers should be consulted in the process for deciding these changes to retirement provision. Age UK also point out that wide range of factors should be considered before implementing the proposals. The charity believe that at least 10 years’ notice is required for people to be able to plan properly.