logo
State pension age review needed to ensure system ‘affordable'

State pension age review needed to ensure system ‘affordable'

The Government review is due to report in March 2029 and Ms Reeves said it was 'right' to look at the age at which people can receive the state pension as life expectancy increases.
The state pension age is currently 66, rising to 67 by 2028 and the Government is legally required to periodically review the age.
The Chancellor told reporters: 'We have just commissioned a review of pensions adequacy, so whether people are saving enough for retirement, and also the state pension age.
'As life expectancy increases it is right to look at the state pension age to ensure that the state pension is sustainable and affordable for generations to come.
'That's why we have asked a very experienced set of experts to look at all the evidence.'
The review was announced by the Department for Work and Pensions on Monday and will involve an independent report, led by Dr Suzy Morrissey, on specified factors relevant to the Review of State Pension Age along with the Government Actuary's Department's examination of the latest life expectancy projections data.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: 'There will be many factors that need to be assessed during this review of the state pension age.
'One of the most important will be healthy life expectancy which according to the latest data hovers in the early 60s.
'This means the reality is that many people will face real difficulties in continuing to work until their mid-to-late 60s and could face a sizeable income gap while they wait to receive their state pension.'
Rachel Vahey, head of public policy at AJ Bell, said: 'An ageing population places an increasing burden on taxpayers, with state pension costs rising and fewer working-age taxpayers to cover the cost.
'Future governments will hope that an improved economy and growing tax receipts will help alleviate some of the pressure. But that can't be guaranteed and there needs to a be a credible plan for maintaining affordability.'
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Ghana narrows fiscal deficit target after better-than-expected first half
Ghana narrows fiscal deficit target after better-than-expected first half

Reuters

time26 minutes ago

  • Reuters

Ghana narrows fiscal deficit target after better-than-expected first half

ACCRA, July 24 (Reuters) - Ghana has narrowed its fiscal deficit target for 2025 after a better-than-expected first six months of the year, its finance minister said on Thursday, pledging to get public finances back on track. The West African country is emerging from its worst economic crisis in a generation, featuring turmoil in its cocoa and gold industries, a severe cost-of-living squeeze and a lengthy debt-restructuring process. But this year, key macroeconomic indicators have improved, with growth accelerating to 5.3% year-on-year in the first quarter and inflation falling to 13.7% in June, its lowest since 2021. The government now expects a fiscal deficit of 3.8% of Gross Domestic Product (GDP) this year, narrower than the 4.1% targeted in March, Finance Minister Cassiel Ato Forson told parliament during a mid-year review of public finances. In the first six months the deficit was 1.1% of GDP, ahead of the 2.4% targeted. Forson said economic growth could possibly exceed the March target of 4% and officials were hopeful they could hit the year-end inflation target of 11.9% ahead of schedule. "We have borrowed less than we planned, signifying strong expenditure control and fiscal discipline," Forson said. "This is a strong signal to the investor community and all stakeholders that the needed fiscal consolidation is happening here in Ghana and it will be sustained." In the first half of the year, total revenue and grants were roughly 3% short of target, but expenditure came in 14% below target. Forson said risks to the public purse included a shortfall in customs revenue, mounting wage pressures and smuggling of marine gas oil, adding Ghana was not out of the woods yet.

Ministers urged to explain plans which could re-establish Hong Kong extraditions
Ministers urged to explain plans which could re-establish Hong Kong extraditions

Glasgow Times

time29 minutes ago

  • Glasgow Times

Ministers urged to explain plans which could re-establish Hong Kong extraditions

The move could put at risk dissident Hongkongers who have fled to the UK to avoid recrimination by the Chinese government, a senior Conservative warned. Shadow Home Office minister Alicia Kearns urged the Government to ensure 'protections will be put in place to ensure no Hongkonger, CCP (Chinese Community Party) critic or anyone targeted by the CCP will be extradited under the new arrangement'. The UK's extradition treaty with Hong Kong was suspended by the then-Tory government after a new national security law was imposed on the territory by China in 2020. The treaty meant Hong Kong could request that someone living in the UK suspected of a crime at home could be handed over to face justice, and vice versa. Fears that the law could lead to human rights abuses were behind the UK's reasoning to put the agreement on ice. Ministers have now introduced a law change in the Commons which would tweak how Hong Kong is designated under the 2003 Extradition Act. The statutory instrument introduced in the Commons on July 17 would effectively establish a 'case-by-case' extradition route with Hong Kong, as well as Zimbabwe. It also changes how Chile is classified under the Act because the South American country has signed an international extradition treaty. Security minister Dan Jarvis leaves the Cabinet Office on Whitehall, central London, following a Cobra meeting (James Manning/PA) In a letter to shadow home secretary Chris Philp seen by the PA news agency, security minister Dan Jarvis suggested the change was needed as no extradition to Hong Kong can currently be made 'even if there were strong operational grounds to do so'. Mr Jarvis added: 'The way to resolve this situation is to de-designate Hong Kong and Zimbabwe from the Act so that we can co-operate with them on the case-by-case ad hoc basis available for non-treaty partners. 'The safety and security of our citizens is our top priority. 'Ensuring that territories are correctly designated under the Act will ensure that the UK can accept extradition requests in a lawful and timely way to ensure the public is not put at risk.' Writing in response to Mr Jarvis, shadow minister Ms Kearns questioned why the Government had taken the step, as she said the situation in Hong Kong had 'worsened' in the years since the national security law was introduced. She pointed to the case of Jimmy Lai, the 77-year-old British national and proprietor of the Apple Daily newspaper, who is facing detention by the Chinese government, as well as other critics of Beijing. 'Has the Government assessed political freedom and the rule of law have been returned to Hong Kong, or have you decided these issues are no longer saleable alongside the 'reset' in relations between the UK and China?' Ms Kearns asked in her letter. Government plans to reintroduce extradition cooperation with Hong Kong are highly concerning. Why does the Government deem this reasonable when freedom of expression, political freedom and the rule of law in Hong Kong have been crushed by The National Security Law and the… — Alicia Kearns MP (@aliciakearns) July 24, 2025 In a post on social media, she added: 'I urge the Government to give urgent reassurances on how this system will be safely managed and what protections will be put in place to ensure no Hong Konger, CCP critic or anyone targeted by the CCP will be extradited under the new arrangement.' The Hong Kong national security law criminalises anything considered to be secessionist from China, and has led to a crackdown on critics of Beijing. Some 150,000 Hongkongers have moved to the UK under a special visa scheme launched in early 2021, after the law was introduced. Since coming to power, Labour has sought to reset relations with China with the aim of boosting trade, after the Conservatives took an increasingly hawkish attitude towards the country while they were in office. In a statement, security minister Mr Jarvis said it was 'entirely incorrect to say the UK has restored extradition co-operation with Hong Kong'. He added: 'The 1997 treaty remains suspended and this legislation simply completes the severing of ties between the British and Hong Kong extradition systems. This amendment is in order to give legal effect to the suspension of the extradition treaty with Hong Kong.' The Government is 'unwavering in its commitment to upholding human rights, the rule of law, and the safety of all individuals in the UK, including the many Hong Kongers who have made this country their home', Mr Jarvis said.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store