My Department is launching the second Government Review of State Pension age, which must be published by May 2023, under Section 27 of the Pensions Act 2014.
As the number of people over State Pension age increases, due to a growing population and people on average living longer, we need to make sure that our decisions on how to manage the costs of State Pension provide fairness to both taxpayers and pensioners and that it continues to provide the foundation for retirement planning and financial security.
In line with the legislative requirements to review whether the rules about pensionable age remain appropriate, this Review will consider a wide range of evidence from every part of the United Kingdom. It will explore the implications of the latest life expectancy data, including evidence on healthy life expectancy disparities, to provide a balanced appraisal of the costs and options to make sure our decisions on State Pension age are robust and transparent. The Review will also consider how we best support an ageing population and their opportunities to work.
In line with the statutory framework, I am also commissioning two independent reports to contribute to the evidence-base that will inform this Review. I will be commissioning the Government Actuary to provide a report analysing the latest life expectancy projections. I am also commissioning Baroness Neville-Rolfe DBE CMG to provide a report which considers the metrics we use for analysis when setting State Pension age. Baroness Neville-Rolfe DBE CMG has a recognised wealth of senior level experience from a career in business and the public sector, including serving as a company director, working in the UK and internationally as well as being a pension scheme trustee in a FTSE 100 company. I welcome an external consideration of this issue. I have also asked Baroness Neville-Rolfe DBE CMG to consider the views of other experts and stakeholders. I attach the Terms of Reference for Baroness Neville-Rolfe’s report to this statement, which will also be made available today on the www.gov.uk website.
This statement has also been made in the House of Lords