How long will you be working?

The results of a major pension review are due to be published in May 2017. Experts are already stating that they expect up to 30 million people to have to wait an extra year before receiving a state pension. This means that anyone set to retire after 2028 will have to work longer.

The Daily Telegraph looked at the implications of these potential changes and estimate the plans could save the Treasury's around £240 billion, experts have described this as a "politically painless" way to cut pension spending. Richard Harrington, the pensions minister, has talked about the importance of making the state pension sustainable in light of longer life expectancies.

 

The DWP have now identified two options: make no changes to a formula, which triggers state pension age increases when an average person can be expected to spend a third of their adult life retired. Or, reduce the point in the formula from a third to 32%. Although this sounds a small change it would move the state pension date above 67 years old from 2028, instead of 2039.

Plans for a full state pension review have been circulating since 2013. Richard Harrington summed up the aim as follows: "People are living and working longer than ever before, that is why it is important we get this right to ensure the system stays fair and sustainable for generations to come.