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In the News

Is the UK government planning to raise the pension age (again)?

Geoff Riley

26th January 2023

The UK state pension age may rise to 68 in 2030s according to reports. Teachers of a certain age might want to look away now!

It seems that the state pension age is on the point of rising to 68, with the Treasury apparently wanting to implement the change as early as 2035. This would affect anyone under the age of 54.

The state pension age in the United Kingdom (UK) is the age at which a person becomes eligible to receive the state pension. The state pension age has been gradually increasing over time and it is due to increase in the future.

Why is the state pension age rising?

The UK state pension age is rising for several reasons, including:

  1. Increasing life expectancy: As people are living longer, the government needs to ensure that the state pension system is sustainable for the long-term. By raising the state pension age, the government aims to ensure that the state pension will be available to future generations.
  2. Financial sustainability: The increasing life expectancy of the population has led to an increase in the number of people claiming state pensions for longer periods of time. This has put pressure on the government's finances and has led to the need to increase the state pension age to help ensure the long-term sustainability of the UK state pension system.
  3. Cost-cutting measure: Increasing the state pension age can be seen as a cost-cutting measure for the government as it reduces the amount of money that needs to be paid out in state pensions over time.
  4. Encourage people to work longer: Raising the state pension age can encourage people to work longer, which can help to increase the overall productivity of the economy and reduce the number of people claiming state benefits.
  5. Fairness: State pension age is to be based on life expectancy, making it fairer for the next generations.

Life expectancy in the UK

Life expectancy in the United Kingdom (UK) is the average number of years that a person is expected to live. It is an important demographic indicator that is used to measure the overall health of a population.

As of 2021, the life expectancy in the UK is around 78 years for men and around 82 years for women. However, this number can vary depending on factors such as socioeconomic status, location, and access to healthcare.

Life expectancy in the UK has been increasing over time, but it has also been affected by factors such as COVID-19 pandemic, which has caused an increase in mortality rates. It is worth noting that there are also discrepancies in life expectancy across different regions in the UK, with people living in more deprived areas tending to have lower life expectancy than those living in more affluent areas.

What is the state pension triple lock?

The "triple lock" is a policy that applies to the state pension in the United Kingdom (UK). The policy guarantees that the state pension will increase each year by the highest of the following three measures:

  1. The Consumer Prices Index (CPI) measure of inflation
  2. Average earnings growth
  3. A minimum of 2.5%

The triple lock was introduced in 2010 by the UK Government to provide certainty and stability for pensioners and to ensure that the value of the state pension keeps pace with the cost of living.

The idea behind the triple lock is that it guarantees that the state pension will increase each year by at least 2.5%, regardless of whether inflation or earnings growth is lower. This is intended to help protect pensioners from the effects of inflation and to ensure that the state pension keeps pace with the cost of living.

However, the policy has also been criticized as it increases the cost of the state pension and could be seen as a burden on the government's finances. Some analysts argue that it is too generous and could be adjusted to help ensure the long-term sustainability of the state pension system.

Geoff Riley

Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.

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