State Pension Age Rise Shelved

It seems likely that a planned increase in the state pension age will be shelved, after the election results forced the government into an alliance with the DUP, who oppose such a rise. In March, the Cridland Independent Review proposed that the age of retirement should be increased to 68 by 2039, rather than by 2046 as current plans suggest. This would have affected when anyone currently under the age of 45 could take their pension – potentially changing the plans of around 5.8 million people.

FT Adviser reports

“Hugh Nolan, president of the Society of Pension Professionals and director of Spence & Partners, said if Prime Minister Theresa May, whose Conservative party has the most seats but not a clear majority following the general election, has any sense at all, she should run for the hills and not mention the Cridland report… Steve Webb, director of Policy at Royal London, said the loss of its majority in the House of Commons will make it much harder for the Conservatives to go for an aggressive schedule of pension age increases… The Cridland recommendations were generally seen as something of a ‘middle way’ and may still form the basis of the plans of the new government, but it will be a test of their political strength to see if even these relatively modest proposals are blocked.” Association of Consulting Actuaries chairman, Bob Scott, said a quick decision on the state pension age was required… Mr Scott said a decision, delayed because of the election, on whether the state pension age increase to age 68 will be brought forward and how future changes might then progress, now looks to be in serious doubt.”