Overview

• The Department for Work and Pensions has launched an evidence-gathering review, led by Suzy Morrissey for Work and Pensions Secretary Liz Kendall, into automatically linking the state pension age to life expectancy.
• Reporting says such formulas could imply an eventual eligibility age near 70, while no change is proposed and recommendations are expected in the coming years.
• Current law keeps the state pension age at 66 with scheduled rises to 67 between 2026 and 2028 and to 68 between 2044 and 2046.
• The review will examine automatic adjustment mechanisms used in countries including Denmark, Finland, Italy and the Netherlands, with Denmark recently setting its retirement threshold at 70.
• Experts including Sir Steve Webb and Catherine Foot warn that a rigid formula could make dates swing with new projections and deepen inequality, citing government data on 89,000 extra sickness-benefit claims after the last rise and research showing 62% retire before reaching state pension age.