Domesday Live

Why is the state pension age going up?

People are living longer, so the state pension is paid for more years than it used to be, and fewer workers pay for each pensioner. Raising the age cuts the bill and asks people to work a little longer. The age is being raised from 66 to 67, and a rise to 68 is set in law for the mid-2040s, with years of notice for each change.

Why it happens

• People live longer. Someone reaching pension age today can expect to draw a pension for many more years than earlier generations did. The state pension is paid out of taxes and National Insurance collected from today's workers, so every extra year of payments adds to the bill.
• Fewer workers for each pensioner. The population is getting older, with more people over pension age in proportion to those of working age who pay tax and National Insurance. That makes the cost harder to cover without raising taxes or the age.
• It is the biggest single benefit. The state pension is the largest single payment the government makes to individuals. Small changes to who gets it, and when, move billions of pounds, which is why governments keep coming back to the age.
• The age is set in law, and reviewed. The rise from 66 to 67 is phased in over two years, and a rise to 68 is set in law for the mid-2040s. The law requires the government to review the age regularly and to give at least ten years' notice of any change.