Work and pensions secretary Iain Duncan Smith has confirmed the state pension age will increase to 67 earlier than planned.
The retirement age was due to rise to 67 in 2036 and to 68 by 2046 but Duncan Smith (pictured) said the timescale, set out by the previous government, was ‘too slow’. Sources told The Observer the state pension age is likely to hit 67 in 2026.
‘People are living longer but they’re still retiring at the same age, so the purpose now is too look at that, and we’re reviewing that to see what might be reasonable, but always giving them good warning about what happens.’
Despite plans to speed up the increase in the retirement age, women may be given longer to prepare for the increase in their pension age to 65, due to happen in 2018, and another rise in 2020 to 66. Many, including independent pensions expert Ros Altmann, have argued the quick increase in women’s pension age to 66 is unfair.
She said: ‘Bringing forward the increase to 67 by 2026 will however allow the government to undo its terribly unfair plans that were hastily announced in the Pensions Bill. Having promised in the coalition agreement that it would not increase state pension age beyond age 65 before 2020, it went back on that promise and announced increases for some women in their late fifties and they have not had enough time to prepare.
Source: New Model Adviser 12th September
