Pension Age May Rise to 72

A think tank has warned that the age people can claim the state pension has to rise to 72 if it is to be in line with the increase in life expectancy.

The Pension Policy Institute (PPI) said in the year 2000, the proportion of people’s life in which they were eligible for a pension had increased to 30 percent, from 25 percent in 1981. And by this year it had increased to 33 percent.

The group went on to say that if the government wanted to keep the amount of time people claimed the state pension at the same level as 1981, the age would need to increase to 72 by the year 2030.

In order to ease into this change, the group advised that men should ideally be given 10 years notice in order for them to plan changes in their savings and that women should be given more than 10 years notice.
Currently, the state pension is age is 65 for men and 60 for women.

By 2020, the age for women to receive the state pension will be 65 also, with the change coming in gradual steps.

The previous government had passed bills to increase the state pension age to the age of 66 for both sexes by 2006 and 68 by 2046, although the current government has indicated the rise may be faster and further than this.

Ricky Steedman