Ahead of an impending review of the state pension age, Jeremy Hunt has hinted that an increase in the state pension age may be necessary to reduce pension costs and account for rising life expectancy.
The government has been considering whether to accelerate the rise in the age at which individuals can receive their pensions to 68 with the Chancellor suggesting that “fiscal sustainability” will be a crucial factor in determining this decision.
During a parliamentary session, he stated that the review of the state pension age must carefully balance important factors, such as economic context, the latest life expectancy data, and fairness to both pensioners and taxpayers.
The current state pension age of 66 is due to rise to 67 in 2028, and then to 68 in the mid-2040s.
Any decision to bring these dates forward, must by law be announced within seven weeks of the review date, is understood to have caused tensions between the Treasury and the Department for Work and Pensions over whether to prioritise public finances or maximise the welfare of pensioners.
