The move, first outlined in the Cridland Review, will affect everyone born between 6 April 1970 and 5 April 1978.Explaining the change, the Department for Work and Pensions says 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.Under the previous timetable, annual spending on the State Pension would have increased by 1% of GDP on 2016-17 by 2036-37. This is the equivalent to £20 billion in today’s terms – or a rise in taxation of £725 per household.Keeping the State Pension age at 66 would cost over £250 billion more than the government’s preferred timetable by 2045/46, it reports.

"Fair and sustainable" pensions

Announcing the move, Secretary of State for Work and Pensions, David Gauke, said: “Since 1948 the State Pension has been an important part of society, providing financial security to all in later life.“As life expectancy continues to rise and the number of people in receipt of State Pension increases, we need to ensure that we have a fair and sustainable system that is reflective of modern life and protected for future generations.“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.

Intergenerational impact of pensions

John Cridland’s review sought to look at the intergenerational of pensions under the “three pillars” of affordability, fairness and fuller working lives.When the modern State Pension was introduced in 1948, a 65-year-old could expect to spend 13.5 years in receipt of it – 23% of their adult life. This has been increasing ever since. In 2017, a 65-year-old can now expect to live for another 22.8 years, or 33.6% of their adult life.No one born on or before 5 April 1970 will see a change to their current proposed State Pension age.

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Related reading:

• EU pensions gender gap: inequality set for long term

• UK slips two places on Melbourne Mercer Global Pensions Index

• Mid-life pension MOTs on road to longer working lives

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Opposition to the proposals

The government said the measure sought to “maintain fairness between generations in line with continuing increases in life expectancy.” However, opposition parties challenge the rise. The Scottish National Party has said it is against the change.Shadow work and pensions secretary Debbie Abraham also told MPs the move was “astonishing”, given "most pensioners will now spend their retirement battling a toxic cocktail of ill-health,” which was a finding from Public Health England analysis earlier this month.Recent studies also suggest medical and social advances have reached their limit in terms of improving life expectancy.

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