Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • July 2017
07

State pension age rise brought forward seven years

Open-access content Wednesday 19th July 2017 — updated 5.50pm, Wednesday 29th April 2020

The UK state pension age is set to rise to 68 between 2037 and 2039 – seven years earlier than originally proposed, the Department for Work and Pensions (DWP) announced today.

2

It said that demographic pressures meant it would be "irresponsible" not to make the change, and that it would place an "unfair burden" on younger generations.

The proposals are set to impact millions of people aged under 47, but will not affect those born after 5 April 1978, with the plans expected to save the government £250bn by 2045/46.

"As life expectancy continues to rise and the number of people in receipt of state pension increases, we need to ensure that we have a fair and sustainable system," secretary of state for work and pensions, David Gauke, said.

"It must be reflective of modern life and protected for future generations. These changes will give people the certainty they need to plan ahead for retirement."

The DWP explained that when the modern state pension was introduced in 1948, a 65-year-old could expect to spend 23% of their adult life receiving it, but that this had now increased to 33.6%

It said that it had accepted recommendations proposed in a report concerning the pension age by John Cridland earlier this year, and that those affected would still receive more than previous generations.

However, it is not looking to legislate until the next review in 2023 so that the latest life expectancy figures can be used, effectively leaving it to the next government to bring in the change.

There is currently a legal requirement to review state pension ages once in every parliament, and after a report from the Government Actuary's Department earlier this year recommended a rise to 70 for anyone aged 30 or under, further increases are expected.

"If life expectancy does continue to rise then the state pension, over the longer term, will be too costly to maintain without significant sacrifices elsewhere - potentially putting an undue burden on the working age population," Barnett Waddingham consultant, Malcolm McLean, said.

"It seems inevitable, particularly if the triple lock is to continue, that state pension age will have to continue to rise reaching perhaps 70 or beyond by the mid-point of the century."



Sign up to our free newsletter here and receive a weekly roundup of news concerning the actuarial profession

This article appeared in our July 2017 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

UK slips down retirement security rankings

The UK has dropped from 17th to 18th place in an annual list of the best countries to retire in, with Norway claiming the top position for a second year in a row.
Wednesday 19th July 2017
Open-access content
2

Government has 'window of opportunity' to avoid exodus of firms

Some 57% of British firms are looking at scenario and contingency planning in the event of a hard Brexit, according to a survey of business leaders.
Thursday 20th July 2017
Open-access content
2

Younger generation saving more than any other

UK adults aged 18-24 save 10% of their annual pre-tax income on average – more than any other generation, according to new research by Aldermore Bank.
Tuesday 18th July 2017
Open-access content
2

UK moves up table of countries most prepared for change

The UK’s entrepreneurship, use of technology, and economic openness has seen it jump from 13th to 10th position in a table of nations best prepared for change compiled by KPMG.
Thursday 20th July 2017
Open-access content
2

Economic cost of natural disasters less than half 10-year average

Global economic losses from natural disasters for the first half of 2017 are estimated at $53bn (£40.8bn) – 56% lower than the 10-year average of $122bn.
Friday 21st July 2017
Open-access content
2

State pension age change to cost seven million people £10,000

The UK government’s decision to raise the state pension age to 68 seven years earlier than originally proposed will cost 7.6 million people nearly £10,000 each.
Monday 24th July 2017
Open-access content

Latest from July 2017

2

UK FinTech investment booms

Total FinTech investment in the UK reached $1.4bn (£1.07bn) in the second quarter of 2017, according to new research by KPMG.
Friday 4th August 2017
Open-access content
2

Self-employed fast becoming 'financial underclass'

The average self-employed person in the UK is falling far behind their full-time counterparts in terms of earnings, pensions, and insurance provision.
Friday 4th August 2017
Open-access content
2

Ageing society and migration limits present 'workforce crisis'

The number of workers aged over 50 in the UK economy grew by 230,000 between the first quarter of 2016 and the first three months of this year.
Thursday 3rd August 2017
Open-access content

Latest from small_opening_image

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from inline_local_link

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 07

2

UK FinTech investment booms

Total FinTech investment in the UK reached $1.4bn (£1.07bn) in the second quarter of 2017, according to new research by KPMG.
Friday 4th August 2017
Open-access content
2

Self-employed fast becoming 'financial underclass'

The average self-employed person in the UK is falling far behind their full-time counterparts in terms of earnings, pensions, and insurance provision.
Friday 4th August 2017
Open-access content
2

Ageing society and migration limits present 'workforce crisis'

The number of workers aged over 50 in the UK economy grew by 230,000 between the first quarter of 2016 and the first three months of this year.
Thursday 3rd August 2017
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Shape the Future of Insurance

London (Central)
£ excellent package
Reference
149090

Senior Pricing Actuary - Life Reinsurance

London (Central)
£ excellent
Reference
149089

Insurance Investment Leadership Opportunities

Flexible / hybrid with 2 days p/w office-based
£ dependent upon experience
Reference
149088
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ