State pension age change to cost more than seven million people £10,000 - analysis
2 min read
Government plans to bring forward an increase in the state pension age will cost 7.6 million people almost £10,000 on average.
The figure, which was in a paper by the House of Commons Library, led the Labour party to accuse the Government of a “disgraceful and unjustified attack”.
The retirement age will increase to 68 from 2037, not 2044 as previously planned, the Government announced last week.
Work and Pensions Secretary David Gauke said the move would save the Government £74bn over that seven-year period.
It will affect approximately 7.6 million people who were born in the 1970s since they will now have to work for an extra year.
The House of Commons Library said that the average loss would be £9,800 – which is approximately equivalent to the value of the state pension over a year.
Labour’s Debbie Abrahams, who highlighted the figures today, called on the Government to launch a wider review into the retirement age.
“This is a disgraceful and unjustified attack on the state pension by this Government, who are asking millions of people to work longer to pay for their failing austerity plans,” the Shadow Work and Pensions Secretary said.
“The latest research on life expectancy, published days ago, shows that there is no evidential basis for bringing the state pension age further forward.
“That’s why Labour want to take a measured approach, leaving the state pension age at 66 while we review the evidence emerging around life expectancy and healthy life expectancy, considering how we can best protect those doing demanding jobs and the contributions they have already made.”
The Government pointed out that the changes were in line with the recommendations of a major review by former CBI boss John Cridland.
A Department for Work and Pensions spokesperson said: “These changes will ensure that the state pension is both fair and sustainable for future generations. Those affected will on average still receive the state pension for longer than the generations before them.
“Under the simplified new state pension at its basic level, people in retirement will receive over £1,250 a year more than compared to April 2010.”
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