State pension age hike update and Brits will be very happy (Image: Getty)
Plans to increase the state pension age may be reconsidered as life expectancy in the UK slows. Pensions Minister Torsten Bell suggested that the upcoming review of the age, scheduled for 2029, may need to consider the lack of growth in life expectancy.
The pension age is set to increase from 66 to 67 between 2026 and 2028 and 68 by 2046. Some experts have even proposed raising the pension age to 70 by 2040 to ensure the system remains financially sustainable. However, recent data from the Office for National Statistics (ONS) reveals a notable decline in life expectancy rates.
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Mr Bell acknowledged the slower pace of but clarified that life expectancy had not fallen (Image: Getty)
Between 2021 and 2023, life expectancy at birth for men in England fell by 1.7 years, and by 1.1 years in Wales, compared to 2017–2019. For women, life expectancy dropped by 1.9 years in England and 2.2 years in Wales.
Speaking at the Pensions and Lifetime Savings Association’s annual conference in Edinburgh, Mr Bell acknowledged the slower pace of life expectancy growth but clarified that life expectancy has not actually declined.
He said: “The rise in longevity is falling in that it’s not rising as fast as we would all like.”
Mr Bell noted that the next age review may need to factor in this lack of growth. However, he pointed out: “It’s not just a pensions issue. It’s about our health system; it’s a big problem for the country.”
Mr Bell described the situation as a “slowdown in the pace of progress” and stressed that it still represents a setback.
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What is the current state pension age?
From October 2020, the age for both men and women rose to 66. Currently, two state pensions are available, the basic and the new .
The full basic is currently worth £169.50 per week and is available to:
- Men born before April 6, 1951
- Women born before April 6, 1953.
The new is currently worth £221.20 per week and is available to:
- Men born on or after April 6, 1951
- Women born on or after April 6, 1953.
To receive any rate, people must have at least 10 qualifying years on their National Insurance record. The number of qualifying years on this record determines how much a person will receive, but usually, to get the full rate, a person should have at least 35.
When will the state pension age rise next?
According to the Pensions Act 2014, which requires the Government to review the age every six years, the current age for men and women will increase to 67 between 2026 and 2028.
How to check your state pension forecast
People can find out the earliest age they can claim the by using a helpful on the Government website.
The tool can help people check a number of key things, such as:
- When they will reach age
- The Pension Credit qualifying age
- When they’ll be eligible for free bus travel
To use the service, people will need to prove their identity using Government Gateway. People can register for Government Gateway if they have not used it before.