Overview
- The Office for Budget Responsibility said Wednesday that the Treasury has told it the government's 'current policy' is to move the legally planned rise in State Pension age to 68 forward to 2037–39.
- Analysts estimate roughly five million people now aged about 49–55 would effectively lose a year of entitlement and could see around £12,500 less in state pension income each on current rates.
- Under current law the State Pension age is set to reach 68 in 2044–46 and any earlier change must be enacted by Parliament with statutory notice that is commonly interpreted as at least ten years.
- Pensions Minister Torsten Bell has denied a final decision has been made and officials stress a statutory review led by the Government Actuary’s Department and Dr Suzy Morrissey is still under way.
- The OBR says bringing the rise forward is assumed in its fiscal forecasts because ageing and the Triple Lock push up pension spending and delaying the increase would add roughly £6 billion a year to costs, so rapid legislation would be required to implement a 2037 timetable.