The government is reported to have shelved plans to raise the state pension age to 68, amid falling life expectancy and an anticipated backlash from middle aged voters.
The Financial Times has reported that ministers will delay making a decision of future increases to the state pension until after the next general election.
Currently, the state pension is due to increase to 68 after 2044. However, there were plans to bring this forward, with the increase phased in between 2037 and 2039.
The pensions industry has welcomed this decision. PLSA director of policy and advocacy Nigel Peaple, said: “If it’s true that the Government has decided to not bring forward the date at which the State Pension Age will rise to 68, it is a very positive step for future pensioners because the State Pension makes up the majority of retirement income for most people.
“Moreover, increases in the state pension age fall disproportionately on people with lower incomes who generally have poorer longevity.”
Standard Life managing director for customer Dean Butler commented: “The news that further increases to state pension age have been delayed will be met with a sigh of relief from those who would have been affected.
“When rumours of a planned increase were first reported in January it prompted thousands of people to go online with 110,000 searches for ‘retirement age’ recorded. This was an 82% on the same period last year, highlighting just how significant the issue is for many people.
“Those currently in their early fifties were the first that could have been impacted by the changes and these would have been particularly challenging for a number of groups. Those planning to start accessing their personal savings before for state pension age would have had to consider whether they would have stretched far enough to bridge the gap, while others would have faced an extended period in the workforce.”
