Secretary of state for the Department for Work and Pensions David Gauke has hinted at plans to increase the state pension age in line with John Cridland’s calculations in his latest review.
Speaking at the Association of British Insurers’ long term savings conference, the DWP chief said the government must consider well thought out measures based on “solid evidence” when looking at the repercussions of increased life expectancy on future generations.
He said: “I welcome the contributions of John Cridland and the government’s actuary department on the future of state pension age, it represents exactly the sort of longer terms approach I want to cultivate within my department and across the wider government.”
In his report, Cridland recommended bringing the change to state pension age forward to 68 over a two-year period – starting in 2037 and ending in 2039 – which would mean anyone currently under the age of 45 would have to work for an extra year.
AJ Bell senior analyst Tom Selby said it appeared Gauke was paving the way for a “potentially hugely unpopular” acceleration in the timetable for state pension age increases.
“This will likely set the minority government on a collision course with Labour, which has already rejected the recommendations of the independent Cridland review. This could prove a serious test of resolve for Theresa May’s weakened administration,” Selby said.
Gauke also expressed concern that the self employed were not saving enough into their pensions, and re-committed to promises outlined in the Tory manifesto on the matter.
“The Conservative party manifesto commits us to expanding pension entitlements to include workers who are self-employed,” he said.
“The current review of automatic enrolment will help us explore the best solutions for self-employed savings. In partnership with employers and industry, we’re now in a strong position to build on the successes we’ve already seen and set the direction of future automatic enrolment schemes.”
Prime Minister Theresa May promoted Gauke to secretary of state for work and pensions after forming a minority government in the wake of the snap general election in June.
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