The government is to increase the state pension age from 67 to 68 by 2039, seven years earlier than previously planned, it has been announced.

Addressing the House of Commons today, 19 July 2017, the Secretary of State for Work and Pensions David Gauke outlined the government’s report in response to John Cridland’s state pension age review, which looks at “strengthening the UK’s pension system for many decades to come”.

Gauke announced the government’s acceptance of the “key recommendation” from the John Cridland Review to increase the state pension age from 67 to 68 over two years from 2037, bringing forward the increase by seven years from its originally legislated date of 2044-46.

“This is about the government taking responsible action in response to growing demographic and fiscal pressures,” he added.

The Secretary of State explained: “In 1948, a 65 year old could expect to live for a further 13 and a half years, by 2007 when further legislation was introduced to increase the state pension age, this had risen to around 21 years, and in 2037 it is expected to be nearly 25 years.”

As a result, Gauke said that under the new time table revealed today, pensioners will be able to spend, on average, 22 years in receipt of the state pension, or up to 32 per cent of their lives.

“There is a balance to be struck between funding of the state pension in years to come whilst also ensuring fairness for future generations of tax payers.

“The response I’m setting out today is the fair and responsible course of action. Failing to act now in light of compelling evidence of demographic pressures would be irresponsible and place an extremely unfair burden on younger generations. While an ageing population means state pension funding will rise under any possible time tables we have considered, the action reduces this rise by 0.4 per cent of GDP in 2039/40, the equivalent to a saving of around £400 per household, based on the number of households today.”

He continued to explain that the government’s newly proposed timetable will save £74bn to 2045/46 when compared to current plans and more than £250bn to 2045/46 when compared with capping the state pension age at 66 in 2020.

Gauke added: “I’m grateful to Mr Cridland for his contribution in producing a thorough and comprehensive review… and I am grateful to everyone who took the time to engage.”

Gauke concluded that the government will carry out a further review before legislating to bring forward the rise in state pension age to consider the rise in life expectancy and to allow the assessment of rises in state pension age that are already taking place.

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