The Government could pursue a more rapid increase in the state retirement age to fund plans for a universal basic state pension, say pension experts.
The Department for Work and Pensions is expected to publish a green paper in November outlining proposals for a £140 per week ‘citizens pension’ for future retirees. However, the Government has yet to spell out how the reform, which was dropped by the Liberal Democrats in advance of the general election because it was deemed to be too expensive, will be funded.
Pensions analyst Laith Khalaf (pictured) says a further accelaration of the planned increase in the state pension age, which is due to hit 68 in 2046 under the previous administration’s proposals, could balance the DWP’s books.
He says: “What we may get is some kind of quid pro quo, where you’ve got a more rapid increase in the state pension age in return for a better state pension when you get there.”