The government has published its review into the state pension age, proposing a new timetable for the rise to 68.

Under the proposed new timetable, the state pension age will increase to 68 between 2037 and 2039, earlier than the current legislation, which sees a rise between 2044 and 2046.

The change will affect everyone born between 6 April 1970 and 5 April 1978.

Latest projections from the Office for National Statistics (ONS) show that the number of people over state pension age in the UK is expected to grow by a third between 2017 and 2042, from 12.4 million in 2017 to 16.9 million in 2042.

The DWP said failing to act now, in light of compelling evidence of demographic pressures, would be irresponsible and place an unfair burden on younger generations.

Keeping the State Pension age at 66 would cost over £250 billion more than the government's preferred timetable by 2045/46.

Secretary of State for Work and Pensions, David Gauke, said: "I want Britain to be the best country in the world in which to grow old, where everyone enjoys the dignity and security they deserve in retirement."

"Combined with our pension reforms that are helping more people than ever save into a private pension and reducing pensioner poverty to a near record low, these changes will give people the certainty they need to plan ahead for retirement."

Today's announcement agrees with the timetable set out by John Cridland CBE in March 2017, which proposed bringing forward the increase in state pension age to 68 between 2037 and 2039.

The review highlighted that under the previous timetable, by 2036/37 annual spending on the state Pension would have increased by 1% of GDP on 2016/17, equivalent to £20 billion in today's terms – or a rise in taxation of £725 per household.

The Pensions and Lifetime Savings Association (PLSA) said the proposal will affect more than 7 million people in their late 30s and 40s.

Graham Vidler, PLSA director of external affairs, said: "This group is also those most at risk of inadequate private saving – they have not had the same access to final salary pension schemes as their parents and are too old to enjoy the full benefits of automatic enrolment that their children will see.

"We call on the Government to follow up on one of Cridland's other recommendations and provide access to 'Midlife Financial MOTs', which will help those people who need to work longer before they receive their state pension to make smarter financial choices to boost their savings."

First published 21.07.2017

Lindsay.sharman@wilmingtonplc.com