UK State Pension Age to Be Raised By 2020

One of the surprises that were revealed in Comprehensive Spending Review 2010 by Chancellor George Osborne is the early hike in UK state pension age.

The previous Labour government planned to introduce it in 2026; however, Osborne claimed that the increase from 65 to 66 years for both, men and women, will start in 2018 and will be completed by 2020.

He is determined that his is a wise initiative as most European countries are doing it now in an attempt to save money. Chancellor George Osborne estimated that the hike in pension age will eventually save the government as much as £5 billion a year.

The reason for the early rise in state pension age is the increased life expectancy. The average age for British men and women is 77 and 81 accordingly. This is a significant improvement from 66 and 72 years for men and women registered in the post-World War II period.

Another employment-related change outlined in the review includes the establishment of the National Employment Savings Trust (NEST) on schedule.