Should we raise state pension age or axe the triple lock?
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What is the main topic discussed in this episode?
And this is Money Podcast sponsored by Trading 212. Download the Trading 212 app today and open a cashizer with promo code TIM to get the 12-month bonus promo rate of 4.56%. Terms apply. I'm Georgie Frost and joining me and Simon Lambert today is Lee Boyce. And coming up, when will you get your state pension? The government has reportedly already made its mind up to bring forward the change from 67 to 68 by seven years. We explain what you need to know, plus how to track down your old work pensions and make them work harder for you. Also today, home sellers now face a seven-month wait to exchange. We tell you how to dodge the delays, plus how millions more workers have been pulled into paying higher rates of tax in the past five years.
And Simon has taken his SpaceX holiday. The pictures look lovely, Simon. don't forget to stay up to date with all the latest breaking money news, just go to thisismoney.co.uk or download the app. But first, a review is currently underway to look at when to raise the state pension age. Currently, the official timeline is moving it from 67 to 68 between 2044 and 2046. But all indications are that the government has already made up its mind to increase it seven years ahead of schedule, which will come as a bit of a blow to anyone aged between 49 and 55 hoping to get their state pension at 67. So when will you get yours? Lee, Simon, welcome. Lee, just explain to us the state pension timeline.
Yeah. OK. So we've had some changes, obviously, that's gone on in the last couple of decades. And lots of those are still being argued about, a.k.a. waspy women. But there's, at the moment, talks about this state pension age coming forward quicker than was currently scheduled. So the 68 age that you're talking about here, as you say, 2044, 2046 was what? is currently scheduled but it's likely to come forward 2037 2039 and now that wouldn't come as a huge surprise or a huge shock and the reason why i say that is because there were two previous studies before when the conservatives were in power And they basically chose to ignore them and delayed the decision, the awkward decision, until after the last election.
So there were two reports that kind of said that this should happen. And the government is required by law to review the state pension age every six years. One by an in-house actuary and another by an independent expert. And the rumour is that they've already made their mind up. The current government have already made their mind up. They're going to peel the plaster off and... bring it forward one of the big reasons for this and what experts are kind of arguing about and this argue rumbles on all of the time is about the triple lock and that the triple lock is becoming very expensive and essentially we're going to have to start moving the age goalposts if the triple lock sticks around because basically we're living longer it's becoming more expensive to maintain and
Now, the triple lock is how much state pension rises by each year. So it's either by consumer price inflation, average earning growth, or a minimum of 2.5%. We've had a couple of years where that has raced massively ahead and people... are getting a better state pension, the here and now, but that puts the future state pension ages up in the air. And there's credible fears, I would suggest, that younger generations could be waiting well into their 70s. to take state pension. And actually, experts have warned that increased funding needed for state pension under the triple lot could mean the retirement age would have to rise to 74 by 2069. And that could come forward even quicker. And this is why when we talk on this podcast about the state pension issue,
and where the state pension age currently is. So it depends when you were born, but we've got it that it's risen to 66 to 67. The rises began in April. So this has already been pushed back. And the other thing I should point out here is that the government has to give 10 years notice. So if it is going to push ahead with 68 by 2037, it's going to have to let us know
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Chapters
5 chapters
1
What is the main topic discussed in this episode?
0:03–5:12
2
When will the state pension age rise to 68 and who will it affect?
5:12–13:40
3
Why is the triple lock blamed for pushing up pension costs?
13:40–30:57
4
What can individuals do if they haven't saved enough into private pensions?
30:57–40:58
5
How does stalled life expectancy change the argument for raising pension age?
40:58–41:59
Speakers
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