The State Pension Age (SPA) is the earliest age an individual can elect to claim their State Pension. Under current plans the SPA is due to rise to age 68 by 2046.
However, an independent report prepared by John Cridland (former Director-General of the Confederation of British Industry) suggests that the SPA should rise to age 68 by 2039 instead. Thus, bringing forward the rise in the SPA for many more individuals. The report explained this was necessary in order to “smooth the transition for tomorrow’s pensioners, and to try and make the future both fair and sustainable”.
This recommendation comes at a time when the Government is already considering making changes to either amend or remove altogether the State Pension ‘triple lock’ (i.e. the current process by which State Pension payments rise in line with whichever is the highest of average wages, inflation, or 2.5%). This follows comments made by the Chancellor, Philip Hammond, in his budget statement when he said “as we look ahead to the next parliament, we will need to ensure we tackle the challenges of rising longevity and fiscal sustainability”.