Former CBI chief to lead State Pension age review

John Cridland, former Director General of the CBI, has been appointed as independent reviewer of State Pension age, with the government considering the recommendations by May 2017.

Related topics:  Retirement
Rozi Jones
1st March 2016
Government, parliamant, treasury, commons, downing,

The 2014 Pensions Act requires the State Pension age to be reviewed during each Parliament, however the view will not affect State Pension Age until 2028 at the earliest.
 
The independent review is responsible for gathering evidence on State Pension age and will consider whether the current system of a universal State Pension age rising in line with life expectancy is 'optimal in the long run'.

John Cridland commented:

"I look forward to meeting many stakeholders, hearing the views of experts and the experience of organisations working in this area to help shape the review. I know how important this issue is, and will consider all the evidence to ensure that we have a State Pension age fit for the future."

Minister for Pensions, Baroness Ros Altmann, said:

"I am really pleased to announce that John Cridland has accepted the appointment to review the State Pension age.

"He has made an impressive contribution to both government policy and business throughout his career and is well placed to report on this issue. I am confident that he will produce a thorough, carefully considered, wide-ranging review of this issue which affects the lives of millions of people.

"As our society changes it is only right that we continue to review State Pension ages and take into account the relevant factors to make sure that the State Pension is sustainable and affordable for future generations.

Tom McPhail, Head of Retirement Policy at Hargreaves Lansdown, added:

"We fully expect state pension ages to go up faster than currently planned, and those joining the workforce today are likely to find themselves waiting till their mid-70s to get a pay out from the state system. This is simply a function of the big jumps we continue to see in life expectancy, which the state pension can’t hope to support without costs spiralling out of control.

"Whatever decisions they make, the government needs to make sure they communicate them very, very clearly so individuals can plan their retirement savings with some certainty about what they will get from the state, and when they will get it."

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