What should the upcoming State Pension Age Review consider?

The state pension age increased significantly during the 2010s, so that it is now 66 for both men and women. The increase to 67 starts in just over a years’ time. These changes have important implications for the public finances, as well as for the living standards and wellbeing of people in their 60s. As the government has just announced the third Independent Review of the State Pension age, understanding these impacts is more important than ever.

In this online event, IFS researchers discussed crucial context for the demographic and public finance challenges the government faces in setting the state pension age. We also presented new findings, funded by the IFS Retirement Saving Consortium, on how past increases to the state pension age have affected people’s incomes, spending, and wellbeing. In this we focus especially on those who were already out of paid work by their late 50s – a group that will include many who could be particularly hard hit by a higher state pension age. We also reflected on wider evidence and proposals from the IFS Pensions Review, and set out some of the key issues the upcoming government review should consider. The presentations were followed by a response from Catherine Foot, Director of Standard Life Centre for the Future of Retirement.