State pension warning: A vital review by the Department for Work and Pensions (DWP) may force you to retire later.
A STATE PENSION WARNING has been issued to Britons, warning that many may be forced to retire sooner than expected as a result of a critical review.
The Department for Work and Pensions (DWP) has launched a review of the state pension age timetable, which could have major implications.
If the recommendations are followed, the state pension age could be raised to 68 years earlier than planned.
The state pension age is currently 66, but it will undoubtedly rise in the coming years.
Adrian Lowery, a personal finance expert at Bestinvest, explained the review and its possible consequences.
“The Department for Work and Pensions is re-examining the issue of when the increase in the state pension age to 68 should take effect,” he said.
“The state pension ages for men and women are currently 66, and they will both rise to 67 between 2026 and 2028.
“Those born on or after April 1977 will be affected by the increase to age 68, which is currently scheduled to take place between 2044 and 2046.”
A government review has already recommended that this be pushed back from 2037 to 2039.
This is due to factors such as life expectancy, which has risen and fallen in recent years.
It did, however, take into account projected Treasury costs and labor market trends.
“People born from the early 1970s onwards will face a later state pension age,” Mr Lowery continued.
“As a result, those cohorts may have to delay retirement.”
“However, there is speculation that the current review will not recommend the controversial step due to slowing gains in life expectancy.”
The review will take some time to complete, and it must be published by May 7, 2023, as required by law.
According to the government, evidence from across the UK will be considered in the latest state pension age review.
It will take into account differences between countries and regions, as well as Northern Ireland.
It will also take into account “effects for individuals with various characteristics and opportunities, including those who are at risk of disadvantage.”
However, one expert recently suggested that the government’s plans may be “blown out of the water” because expected increases in life expectancy have not materialized.
According to projections made by the Office for National Statistics (ONS) in 2014, a 66-year-old woman today could expect to live to be around 89 years old.
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