With a decreasing life expectancy comes an increase in the amount of pressure on the DWP to reconsider

With a decreasing life expectancy comes an increase in the amount of pressure on the DWP to reconsider

The Government is under increasing pressure to curb the rapid rises in the state pension age.

Because men and women's life expectancy has fallen by two years, former pensions minister Sir Steve Webb says the Government's proposal to raise the state pension age from 66 to 67 in four years has to be rethought.

A new law will gradually raise the state pension age to 67 in 2026-2028, and then to 68 in 2020-2044.
The DWP will publish its second review of its schedule in May 2023, which will include a conclusion on whether the hike to 68 should be seven years earlier.

This was indicated in the department's initial evaluation in 2017, based on 2014 data.

However, fresh data from the ONS show that life expectancy has declined for both men and women since the initial assessment. Men aged 66 will live 19 years longer, down from 21.3 in 2014. Women of the same age will live 21.3 years against 23.4.

A study found that Covid-19 lowered life expectancy in four fifths of OECD member countries (OECD). The ONS data is only up to June 2020 and does not include the pandemic.

He claimed the last evaluation of state pension ages was based on data that was six years out of date.

Since then, both men and women's life expectancy at retirement has fallen by two years. A substantial shift in such a short time requires a reassessment of the government's intentions to raise the state pension age.

“With the transition to 67 only four years away, the DWP must speed up its present review, as the data does not support quick increases.”

LCP advocated in December deferring the state pension rise from 66 to 67 years.

To accommodate this, Helen Morrissey, senior pensions and retirement expert at Hargreaves Lansdown, says the state pension age has risen quickly in recent years.

“There is considerable debate over whether future increases should be made so swiftly given longevity appears to be decreasing.”

“The State Pension continues to offer the foundation for retirement planning and financial security in later life,” the DWP stated.

State Pension Age Evaluate 2: The Government is mandated by law to review State Pension Age every five years. The Review will examine the laws concerning State Pension age in light of the newest data on life expectancy.