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.
No comments:
Post a Comment