DWP responds to state pension campaigners’ call to lower retirement age to 63 | Personal Finance | Finance
The DWP has issued a response to calls for the state pension age to be lowered to 63.
The idea was put forward by Steven Cameraon, pensions director at Aegon, with those who cannot work because of ill health or caring responsibilities given the option to take their state pension “up to three years earlier”.
With the current state pension age at 66 for men and women, this would mean people would have the option to claim their state pension at 63.
Express.co.uk asked the DWP for a comment on the proposal. A spokesperson said: “We want to ensure the state pension remains the foundation of income in retirement for future generations in a way that it is sustainable and fair.
“Thanks to our triple lock promise, the full rate of the new state pension is now over £11,500 a year.
“Our recent state pension age review concluded that a universal state pension age remained the best system, providing simplicity and clarity, enabling people to plan effectively for retirement.”
This review came out in March 2023, reaffirming the plans to gradually increase the state pension age from 66 to 67 between 2026 and 2028.
There are also plans to increase it again from 67 to 68 between 2044 and 2046, but there will be another review of this within two years of the next Parliament.
“The future cost of the state pension as a percentage of GDP is projected to increase by more than 50 percent over the next 50 years and this looks unaffordable.
“It is important that we look beyond the short term political cycle and establish a stable long-term plan for a sustainable state pension, if we are all going to be able to plan for our futures with confidence whilst ensuring fairness for future generations.”
State pension payments are going up 8.5 percent this month in line with the triple lock. Under the new rates, the full basic state pension is now paying £169.50 a week while the full new state pension is £203.85 a week.
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