The work and pensions secretary has announced a review of the state pension age.
The government is required to conduct a review into the state pension age – currently 66 – every six years, but it appears to be starting this one earlier as the last one concluded in 2023.
The review will consider whether the current state pension age is still appropriate, based on factors such as life expectancy.
Liz Kendall she was “under no illusions” about how difficult it would be to map out plans for pensions for the coming decades amid cost-of-living pressures.
She said “many workers are more concerned about putting food on the table and keeping a roof over their heads than saving for a retirement that seems a long, long way away, and many businesses face huge challenges in keeping profitable and flexible in an increasingly uncertain world”.
Giving a speech in west London, the work and pensions secretary, also announced that she would revive the Pension Commission to consider why future pensioners are on track to be poorer than pensioners now.
The announcement comes following warnings from experts that people looking to retire in 2050 are on course to receive £800 per year less than current pensioners.
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The Department for Work and Pensions (DWP) said 45% of working-age adults were putting nothing into their pensions, with concerns that the cost of living crisis is preventing people from investing in their retirement.
“Put simply, unless we act, tomorrow’s pensioners will be poorer than today’s, because people who are saving aren’t saving enough for their retirement,” Ms Kendall said.
“And crucially, because almost half of the working age population isn’t saving anything for their retirement at all,” the Work and Pensions Secretary said during a speech to launch the move.
The commission is expected to provide recommendations for how to boost retirement income in 2027.
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