State Pension Age of 74 in the 2060s?

Could the State Pension Age (SPA) rise to 74 by the 2060s? That is the suggestion considered by former pensions-minister Steve Webb, who is now working for Royal London. He was commenting on projections by the Office of Budgetary Responsibility (OBR), which include that possibility as one of their scenarios.

The Actuarial Post website reports

“Our society could be completely transformed in a generation in ways that we can barely imagine and for which we are totally unprepared. It is clear that the Government has already built in an assumption of a pension age of 69 for today’s under 35s, but pension ages could rise much further and faster. A world where we cannot get a pension until we are 74 and a million people have celebrated their 100th birthday would need a total re-think of our approach to work, savings, health and care. The Government needs to do much more to give younger workers in particular a more realistic picture of what their later life could look like. The old age experiences of today’s younger workers are likely to be unrecognisable from those of their parents and grandparents. The only people who have choices about when they retire will be those who have a significant pension or other assets of their own and are therefore not dependent on the age at which state pension becomes payable”.