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Ex-CBI head to review UK’s State Pension age
John Cridland, former head of the Confederation of British Industry (CBI) will conduct an independent review of the State Pension to consider changes in life expectancy and society and to ensure that the scheme remains sustainable for future generations.
He’ll consider a “wide range of evidence and analysis” which includes whether the current system of a universal State Pension age which rises in line with life expectancy is the best long-term option.
The 2014 Pension Act requires the State Pension age to be reviewed during each Parliament and this is the first of its kind in the UK.
Cridland’s recommendations will be considered by the government by May 2017, but it will not affect the State Pension age until 2028 at the earliest.
Tom McPhail, head of retirement policy at Hargreaves Lansdown said: “We fully expect state pension ages to go up faster than currently planned, and those joining the workforce today are likely to find themselves waiting till their mid-70s to get a pay out from the state system.
“This is simply a function of the big jumps we continue to see in life expectancy, which the state pension can’t hope to support without costs spiralling out of control.
“Whatever decisions it makes, the government needs to make sure it communicate them very, very clearly so individuals can plan their retirement savings with some certainty about what they will get from the state, and when they will get it.”
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