The state pension age needs to rise to 72 by 2030 to keep the cost to the government at the same levels as in 1981.
This is what the Pensions Policy Institute has said in its submission to the government’s State Pension Age Review.
The Institute also said people would need at least 10 years to prepare and adjust for such a change. The increase in life expectancy is cited as the main driver behind raising the retirement age. The state pension age for women is already being raised to 65 by 2020.
The Labour government intended to raise the state pension age to 66, starting in 2024, with the pension age eventually reaching 68. But the coalition government hopes to make changes earlier.
Source: Recruitment Today