As the Budget release approaches, a reconsideration of the state pension age is ‘not beyond the realm of possibility.’
As the Budget release approaches, the state pension age has been a hot topic of debate, with some speculating that a rethink is possible.
The state pension is currently set to rise from 66 to 67 before 2030, and then to 68 before 2050. However, because of the UK’s declining life expectancy, some people have asked for it to be cut rather than increased.
Rishi Sunak, the Chancellor of the Exchequer, is set to release his Autumn Budget on October 27, 2021, as people around the country wait to see if any changes would affect their money.
The increase in the state pension age, which has been the subject of much debate recently, is one of the potential issues to be addressed. Tom Selby, AJ Bell’s head of retirement policy, shared his opinion on the government’s present plans to raise the state pension age and the chance of a change of heart.
“Currently, the state pension age is 66, with intentions to raise it to 67 by 2028 and 68 by 2046,” he stated (although this could be brought forward to 2039).
“However, in his Conservative Party convention speech, Prime Minister Boris Johnson highlighted regional inequalities in life expectancy as a crucial area of inequality and a focus for his ‘leveling up’ program.”
“Furthermore, we’ve just witnessed a dramatic reduction in average life expectancy — albeit this could just be a one-time blip due to the pandemic.”
“In light of this, it’s not out of the question that the government will announce a review of planned state pension age rises, with a focus on inequities and the long-term impact of Covid.”
“Any action to delay – or abolish – state pension age hikes would undoubtedly be popular, though the consequences to the Exchequer would be staggering.”
According to data from the Office for National Statistics, average life expectancy in England declined by 7.8 weeks between 2018 and 2020, while it fell by 11 weeks in Scotland.
The average life expectancy in England has decreased across the board, although some areas have been hit harder than others. The North East (16.7 weeks) and Yorkshire and the Humber had significant reductions in male life expectancy (8.8 weeks).
Females’ life expectancy declined dramatically as well, according to “Brinkwire Summary News.”