State Pension has to be Raised to Meet Demand



Adjustments have to be made, due to people living longer and staying active years beyond retirement.

Adjustments have to be made, due to people living longer and staying active years beyond retirement.

One think tank has reported the state pension needs to rise to 72 by 2030 to manage those that are living longer and staying active longer.  The proportion of people’s lives in which they received the benefit already equaled 30 by the year 1981.  And it is certain to go higher.

The think tank continued to remark, if the government wanted to maintain the amount of time people could claim the state pension constant at the 1981 level, it would need to increase the age when they first received it to 72 by the year 2030.  Even if people were to receive it for 1/3 of their life the state pension age would still have to rise to 68 in the next 20 years.

These figures were assembled by the Pension Policy Institute in their response to a Department for Work and Pensions Consultation.  The changes made to the state pension age needed to take place gradually, according to the PPI.

The response also said, the Government had to take into account different socio-economic groups, and had to estimate how long people would remain healthy and active.

Also, people who had a shorter life expectancy should receive higher state pension so they were not affected by changes in an unbalanced way.

The age women can start claiming the benefit is slowly being increased from 60 to 65 between now and 2020.  The current pension age for men is 65.

The previous government had already put it on the books for the state pension age to increase, for both sexes , to 66 by 2026 and 68 by 2046.

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