Revising the state pension age timetable
The timetable at which the state pension age is due to increase to 67 is too slow, according to Work and Pensions Secretary Iain Duncan Smith.
Under current proposals, the state pension age will rise to 67 in 2036 and 68 by 2046.
This schedule for increasing the state pension age has already caused controversy, as the state pension age for women will rise faster in the short term than it will for men.
For women, the state pension age increases to 65 in 2018 and then 66 in 2020. This is the consequence of a previous state pension age of 60 for women, which was previously scheduled to rise to 65 in 2020.
There was speculation in the weekend press that the rise to age 67 would need to be brought forward by 10 years, to 2026.
Uncertainty over the state pension age can make retirement planning more challenging.
Whilst not enough on its own for most people to maintain their lifestyles in retirement, the state pension does make a valuable contribution towards overall retirement income requirements.
With the UK population living for longer, it should come as little surprise that the state pension age will need to be continually raised in line with improving life expectancy. For the state pension age to fail to keep pace with improved life expectancy is simply unaffordable, particularly during these more austere times.
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