Labour minister Liz Kendall announces review of state pension age
State pension age could go up again as government launches review
- Work and Pensions Secretary Liz Kendall has initiated a review of the state pension age, potentially leading to an increase, and relaunched the Pensions Commission.
- Ms Kendall warned of a growing threat of pensioner poverty without significant reform, citing Age UK research that future retirees could receive £800 less annually than current retirees.
- The current state pension age is 66, but is set to rise to 67 in 2028. The state pension's triple lock guarantee costs the government £31 billion each year.
- Concerns were raised about the demographic imbalance, with the number of pensioners projected to increase by over 50 per cent by the 2070s, while the working-age population grows by only 10 per cent.
- Ms Kendall said that many working-age people, including a significant portion of the self-employed, are not saving sufficiently for their retirement, exacerbating future financial insecurity.