Possible future changes to the state pension age have been investigated by the Pensions Policy Institute (PPI).
The researchers looked into recent Conservative claims that they would bring forward the present government’s plans to raise the age, should they win the next general election.
Current government proposals suggest that the state pension age will increase from 60 in 2010 to 65 in 2020.
From there, the retirement age will increase to 66 for both genders by 2026 and to 68 by 2046.
However, the Tories have now proposed an increase to 66 for men by 2016 and for women four years later.
Increased longevity in the UK putting a burden on government finances provides financial justification for these changes.
The PPI suggested that these tougher Tory rules would reduce the cost of providing the state pension by up to £3.5 billion by 2022.
However, people struggling with their finances due to these changes are likely to look elsewhere to supplement their incomes.
This could result in an increase to the popularity of lifetime mortgages.
Posted by Alison Stephenson
