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Peers comment on State Pension Age proposals

On 3 December 2013, the Pensions Bill received its second reading in the House of Lords. The Bill has already been approved by the House of Commons, and it contains a provision to increase the state pension age to 67 in stages between 2026 and 2028.

Some peers do not think it is fair that the state pension age is set at the same level for everyone, when there can be large differences in people's life expectancy. Research has shown that people living in more wealthy regions tend to live longer, as do people who have had sedentary jobs.

If the state pension age is fixed, then some people could get a state pension for far longer than others.

Baroness Hollis, who is a Board member of the Pensions Advisory Service, said:

“Every year that we raise the state pension age is deeply unfair on those who have had hard lives.

By raising the state pension age, we eat into and reduce their few healthy retirement years even further, all to subsidise the pensions of people, such as me - the longer-lived, healthier, better educated and better off. Our single-age retirement policy - one size fits all - is regressive and unfair.”

So far, the government has committed to consider the ways in which the state pension age could be increased, but this project is in its very early stages.

To read more about the current state pension rules on our website, click here.

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