Under 45? You will now have to work longer before you retire

Public Sector Workers Strike Over The Government Austerity Measures

Public Sector Workers Strike Over The Government Austerity Measures

People now aged 47 or younger will have to work longer before they can claim a state pension after the government raised the retirement age.

Work and Pensions Secretary David Gauke accelerated by seven years the lift in the state pension age from 67 to 68.

The pension age now stands at 65 and 63 for men and women respectively, but previously announced plans included steadily rising the pension age for women to bring it to 65 by 2018.

The Pensions Act 2014 introduced a regular and structured method for considering future changes to the state pension age in light of changes in life expectancy.

"There is a balance to be struck between funding of the state pension in years to come whilst also ensuring fairness for future generations of taxpayers".

The major shift, which will save the Government billions of pounds in the coming decades, was the central recommendation an review former CBI chief Sir John Cridland.

Tom Selby, senior analyst at pension provider AJ Bell, said: "The Government simply had to grasp the nettle on state pension reform". However, the latter increase was only due to begin in 2044 and experts have warned the new proposals would mean over five million people now under the age of 47 will work an extra year.

Labour said it opposed the government's plans, and stood by its manifesto pledge to keep the SPA as it is.

The Work and Pensions Secretary David Gauke unveiled the proposal on Wednesday afternoon (19 July), indicating those born before 5 April 1970 will not be affected.

Chris Bryant, the Labour MP for Rhondda, expressed disappointment that Gauke had not taken the opportunity to shift the government's policy for the so-called Waspi women - those born in the 1950s who have seen their pension age rise faster than expected.

"But increasing longevity also presents challenges to the Government".

Latest projections from the Office for National Statistics show that the number of people over state pension age in the United Kingdom is expected to grow by a third between 2017 and 2042, from 12.4 million in 2017 to 16.9 million in 2042.

In the run-up to the election Jeremy Corbyn had promised to scrap increases to the state pension already planned.

Labour has pledged to leave the state pension age at 66 while it looked again "emerging evidence". In 2017, a 65-year-old can now expect to live for another 22.8 years, or 33.6 per cent of their adult life.

Gauke said the government was "aiming at the proportion of life spent in receipt of state pension to be 32%".

This has been increasing ever since.

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