Rudd rules out raising SPA to 75

Work and Pensions Secretary, Amber Rudd, has ruled out raising the state pension age (SPA) to 75, as proposed by think tank The Centre for Social Justice (CSJ) earlier this week.

Speaking on a visit to Plymouth yesterday (20 August), Rudd said that there was “no prospect” that the proposal to increase the SPA to 70 by 2028 and 75 by 2035 would be actioned.

She commented: “This is not government policy. Government policy is set at young people entering the workforce to retire at 68.

“There is no prospect of raising that age to 75. I would rule it out, yes.”

The CSJ had said that its suggestion would ensure that the ratio between workers and retirees would remain in the “sustainable range” for the next 20 years.

It also said that working for longer has “the potential to improve health and wellbeing, increase retirement savings and ensure the full functioning of public services for all.”

However, the plan was met with criticism from many in the industry, with former Pensions Minister and current life peer, Ros Altmann, describing the proposal as “shocking”, while Hargreaves Lansdown senior analyst, Nathan Long, said that the suggested increase was “pretty brutal”.

Currently, the SPA is due to rise to 67 by 2028, then up to 68 between 2044 and 2046.

In her visit to the Sunflower Centre in Plymouth, a centre for women recovering from abuse, addiction and mental health issues, Rudd added: “We all live longer and so it’s right, given that taxpayers have to pay for pensions, that we ask people to work a little longer in order to enjoy the rest of their long life, we hope, with a secure income.”

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