Impaired life annuities could offset ‘unfair' rises in state pension age for groups with lower life expectancy, the pension minister has said.
State pension age (SPA) is set to increase to 67 in the UK between 2026 and 2028 and the government is considering an automatic up-rating system that links SPA with increases in longevity. Steve Webb said increases in SPA could be viewed as unfair for people who will not see their life expectancy rise as quickly, but argued this could be “offset” through impaired life annuities. He said: “Whenever people put SPA up, someone comes along and says that is not fair because there will be variations in life expectancy, which of course there are. “But as defined contribution (DC) becomes ...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
