Age of State Pension to increase to 68 from 2037

The  State Pension Age will rise from 67 to 68 from 2037, the Work and Pensions Secretary David Gauke had just announced.  The recommendation was first cited in the Cridland review earlier this year and brings the change forward by seven years. 

 

 

Commenting on the government’s response to the Cridland review of the State Pension Age, Andy Briggs, Government Business Champion for Older Workers with Business in the Community said:  

“Reviewing the State Pension Age is a key part of responding to an ageing population. Our demographics are changing, and we need to find ways to ensure financial security for the growing retired population. “The State Pension plays a crucial role in supporting people in later life. As we are all living longer, it is inevitable that we will need to work longer as well.  Working longer has benefits beyond the financial. Many people are choosing to work longer because they wish to stay active and contribute to their community, as well as enjoying the social aspects of work. Business can benefit greatly from employing older workers too. They have a wealth of skills, knowledge, experience and networks to offer. As the Government’s Business Champion for Older Workers, I have set a target to support a million more over-50s in the UK workforce by 2022, to encourage businesses to utilise the skills and experience of their older workers. Raising the State Pension Age is just one part of the solution. It will not be able to offset the economic impact of an ageing population alone. I will continue to seek opportunities for greater flexibility in state support for older workers, and for individuals to balance work, family and other commitments.”

 

 

Responding to the report Rachael Saunders, Age at Work Director, Business in the Community said: 

Today, the government has announced that the state pension age will rise to 68 from 2037.  It is important that future pensioners have substantial notice of the change. The government has accepted Cridland’s recommendations for the future of the state pension age. With an ageing population, it is inevitable that we need to work longer, and the rule of thumb of a third of adult life in retirement is fair.  The challenge is the groups who are clearly disadvantaged by a rising state pension age – carers, those with health conditions, and those in physically demanding jobs that cannot be done into later life.  Cridland made some recommendations to support those groups, and there is more that government can do.  Increasing the state pension age is not a magic bullet – there is more to do to respond to our ageing population.  There is increasing demand for flexible working amongst older workers as it enables them to manage work with caring responsibilities or health issues and enables a smoother and longer transition into retirement. Not enough roles are offered with flexibility and autonomy, and even when it is available, we know that older workers do not always feel able to take it up. This has to change. The right to request flexible working should be available from day one of a new job.  John Cridland’s Mid Life MOT is a brilliant idea and has the potential to create a new social norm so that we all are prompted to see the opportunities open to us in later life.  Business has a responsibility to rise to the challenge of an ageing population and make the most of older workers. As the Business Champion for Older Workers, we have launched a target for one million more over-50s in work by 2022. To help us achieve this target, we are calling on employers to Commit and Publish – Commit to increasing the number of your older workers by 12% by 2022 and Publish the number and percentage of older workers in your organisation. This is a significant contribution that business can make in response to our ageing population.