Briefing Note 53 - Could increases in State Pension Age be brought forward?
In October 2009 the Conservative Party announced that, if elected in 2010, it would set up a commission to investigate the possibility of bringing forward planned increases in State Pension Age (SPA). The Conservative Party proposal could mean increasing SPA for men from 65 to 66 from 2016 at the earliest and the increase for women from 65 to 66 after 2020. The aim of this policy would be to offset the cost of an ageing population and a more generous Basic State Pension (BSP) in the future.
This Briefing Note looks at the effects of introducing the Conservative Party proposal on individuals who would be affected, on state spending on pensions, and the wider implications on government finances. It also considers how it would impact decisions on when to retire, and whether increases to SPA discriminate against different social classes.
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