The government has announced that the rise in the state pension age from 67 to 68 will be phased in between 2037 and 2039, rather than between 2044 and 2046, as was previously planned.
The change could potentially save £74 billion by 2045/46, the government said.
Individuals born between 6 April 1970 and 5 April 1978 will be affected. The government stated that no one born on or before 5 April 1970 will see a change to their proposed state pension age.
David Gauke, Secretary of State for Work and Pensions, commented: ‘Since 1948, the state pension has been an important part of society, providing financial security to all in later life.
‘As life expectancy continues to rise and the number of people in receipt of state pension increases, we need to ensure that we have a fair and sustainable system that is reflective of modern life and protected for future generations.’
However, the Trades Union Congress (TUC) has warned that the state pension age is now higher than many individuals’ life expectancy.
Frances O’Grady, General Secretary of the TUC, stated: ‘A decent retirement is a right for us all, not a privilege for the few.
‘Rather than hiking the pension age, the government must do more for older workers who want to keep working and paying taxes. Workplaces and working patterns need to adapt to their needs.’