Autumn Statement 2013: The government has brought forward the increase in the state pension age, to 68 by the mid-2030s and to 69 by the late-2040s.
The government had already taken action to control pension expenditure over the medium term by bringing forward the rise in the state pension age to 66 from 2026 to 2020, and introducing legislation to bring forward the rise to 67 from 2036 to 2028.
The government said that these changes will save around £100 billion between 2016 and 2036.
It is also currently creating legislation for a new state pension age framework.
This will mean that the state pension age will be reviewed every Parliament, with the first review occurring early in the next Parliament.
Changes to the state pension age will be considered as part of future reviews, which will take account of the latest demographic data available at the time and be informed by an independently led report on wider factors.
The Department for Work and Pensions is to publish more detail about how this principle will work in practice.
Kevin Wesbroom, senior partner at Aon Hewitt, said: “Plans to bring forward the increase in the state pension age should be a wake-up call for employers. More than ever, this indicates the importance of securing member outcomes.
“We urge employers to participate fully in the government’s review of workplace pensions. The abolition of the default retirement age, the inexorable rise in longevity and an increasingly under-pensioned workforce could be a powerfully toxic combination for employers to deal with.
“Employers need a retirement strategy, just as much as they need a pension strategy.”
