The Government Actuary’s Department (GAD) has been commissioned to look at projected life expectancy in future years, to inform one aspect of the first State Pension age review.
GAD will consider 2 scenarios, based on adult life starting at 20, to inform its report, using future life expectancy projections:
- people spending 33.3% of their adult life in receipt of the State Pension in the future, which reflects the experiences of those reaching State Pension age over the last 10 years
- people spending 32% of their adult life in receipt of the State Pension in the future, which reflects the experiences of those reaching State Pension age over the last 20 years
Pensions Minister, Richard Harrington, said:
As set out in the Pensions Act 2014, the report from the Government Actuary complements John Cridland’s independent report on State Pension age, announced in March, and both will inform the government’s first review of State Pension age.
People are living and working longer than ever before, that is why it is important we get this right to ensure the system stays fair and sustainable for generations to come.
The government has committed to reviewing the State Pension age every 6 years. The first review is due to report back by May 2017.
An interim report into how the State Pension age rules could look beyond 2028 was published on 13 October 2016. The interim report includes a State Pension age consultation that runs until 31 December 2016.
A copy of the ministerial letter commissioning GAD to undertake this work, and the terms of reference for their report, is being placed in the House of Commons Library.
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