The government announced on 30 March 2023 that it would delay the increase in State Pension Age1. The International Longevity Centre, described in its response as the UK's specialist think tank on the impact of longevity on society, said the delay may be politically expedient but that it is inevitable people will receive their pension later than previous generations1.
David Sinclair, chief executive of the ILC, said a failure to make the tough decision now would give any future government difficult financial choices about increasing taxation or reducing spending1.
"The state pension costs the Government over £100bn a year and has increased 3-fold since 2000. By 2040 there will be more than 17m people aged 65+, 4m more than today and so these costs will rise even further. The Institute for Fiscal Studies has suggested that delaying the increase by seven years is likely to cost over £60 billion. This could pay for a lot of levelling up, a lot of preventative health and a lot of care."
The ILC also said nearly two in five adults are economically inactive, and that benefits and state pension systems cannot be sustained unless health inequalities are addressed1. It said the government set an ambitious goal to achieve five additional healthy years for all, but that little has been done to meet the target and the situation has got worse rather than better1.
The announcement did not set out the new timetable for the increase, and the ILC response does not state the ages or dates involved. Those details have not been reported in the material available1.
Why it matters for households
The State Pension Age is the point at which people can claim the State Pension. Delaying the increase means the age at which people can claim stays lower for longer than previously planned, so those approaching retirement are affected by the revised timetable rather than the original one1.
The cost figures cited by the ILC set out the scale of the spending involved: over £100bn a year, up three-fold since 2000, with more than 17m people aged 65 and over by 2040, 4m more than today1. The Institute for Fiscal Studies estimate cited by the ILC puts the cost of delaying the increase by seven years at over £60 billion1. The ILC frames the consequence as a choice between higher taxation or reduced spending at some future point, rather than a saving1.
Anyone wanting to know their own State Pension Age can check it, and a State Pension forecast shows the amount built up so far. The new State Pension explained sets out how qualifying years and the National Insurance record feed into the payment.
What happens next
No further dates have been announced in the material available. The ILC's position is that the delay defers, rather than removes, the decision, and that a future government will face the financial choices it describes1.
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