Millions to work longer as state pension age to be hiked under new government plans – what it means for you
THE retirement age will be raised to 68 by the end of the 2030s under secret Treasury plans.
Millions born in the 1970s and later are likely to be told they must work for longer in the March Budget.
But Chancellor Jeremy Hunt and PM Rishi Sunak were last night warned they were “playing with fire” if change came before the next general election.
The move would bring billions for the UK’s struggling finances.
The state pension age is due to rise from 66 to 67 by 2028.
The next increase — to 68 — was not due to happen until 2046.
But ministers want to bring that date forward as the population gets older and birth rates plummet, meaning there are few young people to pay the tax bill.
The Treasury is said to want the change to 68 to come in as early as 2035 — affecting those who are 54 and under today.
The Sun has learnt the Chancellor is keen to announce the move in his March Budget.
But he is opposed by Work and Pensions boss Mel Stride, who is aiming at 2042.
The head of retirement policy at AJ Bell, Tom Selby, warned: “Rishi Sunak will be playing with political fire. The latest official data suggests average life expectancy improvements — the main justification for state pension age increases — have gone into reverse since the pandemic.”
The Department for Work and Pensions said no decision has been made and the Government was required by law to review the state pension age regularly.
How are you affected?
Everyone working under the age of 54 could be affected by these plans – but it’s those in their early fifties who would be worst affected.
Anyone born after April 1971 was heading towards a state pension age of 68 already.
The maximum new-style pension you can get is £185.15 a week, or around £9,627 a year.
This is going up by 10.1% from April following the government’s Autumn Statement.
That means the weekly allowance will rise to £203.85.
It’s important to note that you can retire at any time, but you need to have a personal pension or retirement plan in place.
While the state pension might not be enough to live off alone, getting the most from it can give your finances a big boost.
Here are five things you can do to boost your state pension in 2023.
You can work out when you can claim the state pension under current rules using the government calculator.