New plan to lower DWP State Pension age to 63 and there's 'support' for it

A top pensions expert has warned the Department for Work and Pensions (DWP) State Pension age should be LOWERED to 63. Ros Altmann has been calling for this for the state pension age to be cut amid the Cost of Living crisis.

Your State Pension age depends on when you were born. There are some changes to the State Pension age at the moment. For people reaching State Pension age now, it will be age 66 for women and men. For those born after 5 April 1960, there will be a phased increase in State Pension age to 67, and eventually 68.

Steven Cameron, pensions director at insurer Aegon, said: "We support giving people the choice to draw it up to three years earlier.” He said: "The higher the state pension age rises, the more people will struggle to stay in work."

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According to the Institute for Fiscal Studies, raising the state pension age to 66 has more than doubled poverty rates among 65-year-olds. It found nearly 100,000 people were pushed into subsistence by the end of 2020 due to the rise in state pension age between 2018 and 2020.

Emily Andrews of the Centre for Ageing Better, the charity which funded the IFS report, said: “These statistics are shocking and show the number of 65-year-olds in absolute poverty rose from one in ten before the state pension age increase to almost one in four just two years later.”

A Government spokesman said: “We know that older workers, including those approaching state pension age, are a huge asset to our economy while for those who can’t work, we provide a strong welfare safety net, which includes Universal Credit.

“We also understand that people are struggling with rising prices which is why we have acted to protect millions of the most vulnerable through at least £1,200 of direct payments this year, and there is a wealth of additional financial support available when people reach state pension age, including Pension Credit – which unlocks an additional £650 cost of living payment for those currently claiming it - and Winter Fuel Payments.”