The Labour Party government is assessing a state pension age hike, with some analysts suggesting ministers should raise the threshold to as high as 70.
DWP set to raise state pension age to ‘one of highest’ in democratic world
The Department for Work and Pensions is set to raise the state pension age to “one of the highest” out of countries associated to the Organisation for Economic Co-operation and Development (OECD), experts have warned.
The Labour Party government is assessing a state pension age hike, with some analysts suggesting ministers should raise the threshold to as high as 70.
Currently. the state pension age sits at 66 years old, with legislation already in place to raise this threshold to 67 by April 2028. But the UK is set to have among the most elevated retirement thresholds in the OECD, Pensions UK has warned.
READ MORE New 10mph speed limit in England ‘for next six months’ with drivers warned
Pensions UK recommends establishing a clear adequacy level for the State Pension, ensuring it meets the minimum income standards necessary for a decent retirement.
Once this baseline is achieved, consideration should be given to transitioning the Triple Lock to a more sustainable uprating mechanism.
This approach would balance the need for adequate pension income with fiscal responsibility, ensuring the long-term sustainability of the State Pension system.
Joe Dabrowski, Deputy Director of Policy at Pensions UK, said: “The State Pension is the backbone of most people’s retirement savings, representing about half of total retirement income.
“For those on lower incomes, it is even more important: 13% of retirees get over 90% of their income from the State Pension.
“The UK will already have one of the highest State Pension ages in the OECD when it reaches 67 for all in 2028.”
Joe added: “Any further increases must be matched by a corresponding improvement in healthy life expectancy so that future retirees enjoy the same number of years in retirement.”
And Joe said: “It is also vital that changes to the system are clearly communicated at least 10 years in advance to give people time to plan for the future.”