Second review of the State Pension age: independent report terms of reference
Published 14 December 2021
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1. Purpose
1.1. The government is required by the Pensions Act 2014 to conduct a periodic review of State Pension age. The independent report on other specified factors (independent report) will provide evidence to inform that review.
2. Context
2.1. As part of the evidence-base that informs the government review of State Pension age, the Secretary of State must commission 2 reports. These are:
- a report from the Government Actuary that provides an analysis of the latest life expectancy projections using specified proportions of adult life over State Pension age
- a report on other factors she considers relevant – the terms of reference (TOR) for the latter are set out below
3. Scope
3.1. The independent report should explore what metrics government should take into account when considering how to set State Pension age. It should include the following factors:
- a consideration of recent trends in life expectancy in every part of the United Kingdom
- whether it remains right for there to be a fixed proportion of adult life people should, on average, expect to spend over State Pension age?
- what metrics would enable State Pension costs, and the importance of sharing these fairly between generations, to be taken into account when making State Pension age decisions?
- what additional or alternative metrics would be appropriate to take into account when making State Pension age decisions?
3.2. In conducting analysis and reaching conclusions, the independent report should have regard to both the sustainability and long-term affordability of the State Pension and the views of organisations, individuals, and other interested parties.
3.3. The government review is expected to take account of a range of evidence including: life expectancy, socio-economic issues and the future affordability and sustainability of the State Pension. The independent report is not expected to cover questions related to the structure of State Pension including, for example, how State Pension is uprated.
4. Deliverables
4.1. The government will consider the findings as part of its review of State Pension age, therefore, emerging findings and recommendations must be submitted to the Secretary of State for Work and Pensions at a date to be determined by the Minister for Pensions and Financial Inclusion and the Secretary of State. The content of the independent report is the sole responsibility of the person appointed to conduct the work who will have the final say on all key outputs and recommendations. The timing and manner of the publication of the independent report will be determined by the Secretary of State.