As longevity improvements collapse, it’s been suggested there would now be no case for raising pension age from 66 to 67 until 2051 – 23 years later than planned. Consultants LCP has argued it could provide a “reprieve” to some 20 million individuals born in the 1960s, 1970s and early 1980s. However, it would deprive the Treasury of billions of savings on state pension expenditure. State pension age is currently set to rise to 68 gradually between 2044 and 2046, but a review is taking place which could change this.
Under proposals, this rise could be moved forward to 2037 to 2039 in a marked difference from the original plan.
Underpinning the review is a vital set of calculations, designed to ensure Britons spend no more than one third of their adult lives in retirement.
However, even prior to the pandemic, forecasted increases in life expectancies have failed to materialise.
Since the last state pension age review was undertaken, there have been marked changes in life expectancies noted by the Office for National Statistics (ONS).
For example, 2014 projections suggested a…
