The John Cridland report looked at the key issues that drive
State Pension age changes including, but not limited to:
- life expectancy
- the challenges faced by those who rely most on the State
Pension
- the long-term financial sustainability of the system
The Government Actuary’s Department (GAD) was asked to
consider 2 alternative scenarios for the State Pension age,
reflecting an adult in receipt of the State Pension for either
32% or 33.3% of their projected adult life in retirement. To do
this it used figures drawn from life expectancy projections from
the Office for National Statistics.
In his report, which will be considered before any decision is
made on changes to the State Pension age timetable after 2028, Mr
Cridland makes a number of recommendations including:
- State Pension age should rise to 68 between 2037 and 2039
- State Pension age should not increase more than 1 year in any
10 year period, assuming that there are no exceptional changes to
the data used
- that all employers should have elder care policies in place
which set out a basic care offer
- that people should be able to access a mid-life career MOT
and review which should be facilitated by employers and by the
government using online support and through the National Careers
Service
Meanwhile, the Government Actuary’s Department report concludes
that:
- under a 32% scenario the State Pension age could rise to 69
between 2040 and 2042
- under a 33.3% scenario the State Pension age could reach 69
between 2053 and 2055
No new changes to State Pension age will
come into effect before 2028 and the government is committed to
maintaining a State Pension that is fair for all generations and
helps to provide for the cost of living in retirement. Part of
this commitment to fairness includes providing 10 years’ notice
of any changes to the State Pensions age.
