The government “should be transparent” about its state pension age plans as a review into increasing the retirement age continues, Royal London director of policy Steve Webb has said.

Considering the Government Actuary Department’s review into the UK state pension age and hints that the age may be raised to 70 for millions of people currently in their 20s, a former Pensions Minister urged that there is a need for the government to be more open with its plans.

“If the government is planning to force tens of millions of people to work to 68, 69 or even 70, then it should be transparent about its plans. This would be a huge shift and should be properly debated, not buried in a technical document seen only by specialists,” Webb told the Guardian.

While the current SPA for people in their 20s is 68, the new schedule may see this rise to 69.

Commissioned by the Department for Work and Pensions, the GAD review is expected to “produce an indicative state pension age timetable based on trends in life expectancy figures and the government’s view on the proportion of adult life people retiring between 2028/2029 and 2064 should spend in receipt of their state pension,” a DWP letter to GAD said.

“Where we got to was a reasonable balance”, Webb told Pensions Age, discussing the agreement by which people are able to retire for a third of their lives in return for working for the other two thirds of it.

However, Webb stated that reducing this to 32 per cent will “save the Treasury billions over decades,” while reducing the retirement of pension savers. Even “one year lost [from retirement] will lead to an individual losing £8,000” of retirement income, he emphasised.

In addition, Webb pointed out to Pensions Age that the government-commissioned John Cridland state pension age review also doesn’t mention the 32 per cent, and so highlighted the need for greater communication and transparency across the industry on the matter.

It was also hinted by Chancellor Philip Hammond in last week’s Autumn Statement speech that changes to the state pension age may be pending. “As we look ahead to the next parliament, we will need to ensure we tackle the challenges of rising longevity and fiscal sustainability,” he noted.

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