The state pension age will rise to 68 between 2037 and 39

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The state pension age will rise from 67 to 68 seven years earlier than planned – starting from 2037. It will affect men and women aged 47 and under– born from April 1970 onwards. How will it work?

How much is the state pension age rising by and when?

The independent Cridland Review, carried out by John Cridland, recommended that the state pension age rise to 68 between 2037 and 39. Under the current plans, the state pension age wasn’t due to rise to 68 until 2044 – 46. This timetable would have meant that people born before 6th April 1978 would still get their state pension when they reach 67.

The new timetable would mean that anyone born after April 5th 1971 wouldn’t get their state pension until they were 68. Anyone born after April 5th 1970 but before April 6th 1971 would have a state pension age of between 67 and 68.

The government says that an increase in the state pension age to 68 in 2037–39 would save £74bn by 2045 – 46 compared to the current plans to increase the state pension age to 68 by 2046. You can read about the recommendations in the Cridland Review in my article.

Is this speeding up of the state pension age definitely going ahead?

No, we can’t say that yet. The government will carry out a further review into the rise in the state pension age in July 2023. The government says that’s to make sure that the state pension age rise is in line with increasing life expectancy. There is quite a lot of evidence that, although we are living longer, the rate of increase in life expectancy is slowing down.

The government won’t put this speeding up of the rise in state pension age before parliament until 2023. It says this would give people at least ten years’ notice of the speeding up of the rise in their state pension age.

How will the government tell people about the rise in state pension age?

The government says that it will deliver the message about the rise in state pension age through a ‘range of communication mechanisms’. It will also encourage people to check their state pension age online.

What about women who are caring for family members or those who are ill or disabled?

The document the government published today just says that it will publish its plans for long term carers to be able to take leave in due course. It doesn’t say how specifically it will address the issue of carers and others who rely on the state pension, not getting their state pension until they are 68.

What about future rises in the state pension age?

The government has said that the state pension age should rise by no more than one year in any one ten year period. Obviously, that’s not what happened to WASPI women born in the 1950s. Here the state pension age rose by six years in a ten year period (it was 60 years of age before April 6th 2010 and will be 60 by October 2020).

My view?

My big concern is that people who have a shorter than average life expectancy, people who are in low paid jobs or who have very little chance of building up a private or works pension and those who have to give up work due to ill health or because they’re caring for family members (mainly women) will really struggle to manage until they get their state pension.

I would have much preferred a system where people could take their state pension early, especially if they’ve saved the state money by caring for their family members over the years.

I also have a huge concern about the way the government communicates this. It’s not got a great track record in this area, so it would have to do a lot better than it has so far.

Useful links: 

You can read more about the government’s plan to bring forward the rise in state pension age on the Gov.uk website.

Related articles: 

History of the state pension; 10 things you need to know about how it affects women

WASPI women could take up apprenticeships, says Pensions Minister

How having children affects your state pension

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