Govt to review state pension age every five years
The government is to review the state pension age every five years in order to keep the retirement age in line with increases in longevity.
In the Department for Work and Pensions paper The Single-tier Pension, which sets out reforms for the state pension, the government said it believes there is a strong case for a more structured way to increase the state pension age.
Reviews will be conducted by an independent panel with a minimum of ten years notice for any change. The report also said any change will be made with reference to maintaining the proportion of adult life spent in receipt of state pension.
The report said regular reviews will ensure fairness between generations as the costs of increasingly longevity will be shared.
It will also avoid future governments taking emergency action on changing the SPA, as done by the current government in 2010 and 2011. It will also provide the public with greater clarity on how and when the SPA will change.
The pension system will remain sustainable in the longer-term and allow the government to react more quickly to changes in longevity, according to the report.