The Government has announced the State Pension age will to rise to 68 from 2037, seven years early, despite leading health expert Sir Michael Marmot, stating that increases in life expectancy are ‘grinding to a halt’.
Stuart Price, Partner and Actuary at Quantum Advisory, said:
“Although an increase in the State Pension age has been on the table for some time so doesn’t come as a surprise, we would have thought they may have waited a bit longer before making the decision.
“Mortality is a key assumption when setting the State Pension age, and with recent statements from the Continuous Mortality Investigation (CMI) and now in Sir Michael’s report, we are hearing that mortality improvements in the UK have slowed down considerably. I think the Government is wrong to increase State Pension age at this time before analysing whether this slowdown is just a blip or a long term trend.
“Furthermore, it seems that yet again the younger generation is picking up the burden of us all living longer. This is compounded by the fact that the younger generation has lost access to defined benefit pension schemes, which in most cases are far superior to the alternative defined contribution arrangements that are made available to them.”
Stuart Price is a Partner at Quantum Advisory, which has offices in London, Amersham, Bristol, Cardiff and Birmingham.
Established in 2000, Quantum Advisory provides pension and employee benefits services to employers, scheme trustees and members.