UK: Higher pensionable age needed to cut costs

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In looking to try and reign in its cost impact, the new British coalition government is considering bringing forward the rise in state pensionable age. The previous administration had already planned to have it at 66 by 2024 with a final objective of it reaching 68.

As part of the consultation process, the Pensions Policy Institute has studied the financial impact of ensuring that with anticipated longer life expectancies, people will continue to receive the state pension for the same proportion of their adult life. Any new changes could not occur before 2016 for men and 2020 for women.