The government will commit to ensuring the state pension age is increased in future to take into account increases in longevity.
It will also publish proposals at the same time as the Office for Budget Responsibility’s (OBR) 2012 Fiscal sustainability report this summer.
According to Chancellor George Osborne in the 2012 Budget report, this action is being taken to tackle long-term fiscal challenges associated with an ageing population.
Read more articles on the 2012 Budget report
I have previously speculated that the latest increases to state pension age would not be the last, and it now looks like this will become a constantly moving target.
While at first glance this may not appear that significant to employers, it should be remembered that the default retirement age was recently scrapped. Given this, many employees will continue in work until (and if) they can afford to retire. That point is likely to be moving ever further away if state pension age regularly increases.