Life expectancy to form part of state pension age review

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The Government Actuary’s Department is to look at projected life expectancy in future years as part of the state pension age review.

Pensions minister Richard Harrington has commissioned the work, which will see the actuary department consider two scenarios based on adult life starting at 20.

The first scenario is based on people receiving the state pension for 33.3 per cent of their adult life, which is the experience of those reaching state pension age over the past 10 years.

The second scenario is based on people receiving the state pension for 32 per cent of their adult life, which is the experience of those reaching state pension age over the past 20 years.

Harrington says: “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.”

An independent report on state pension age is currently being led by former CBI director general John Cridland.

The first review on state pension age will report back by May 2017.