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Former Pensions Minister Baroness Altmann has called on policymakers to look at other ways to solve rising state pension costs than raising the starting age, cutting the amount or more means-testing.

There needs to be fundamental reform to the State Pension to prevent later life poverty from worsening as the pension age rises, a new report warns today.

Plans to bring forward a rise in the state pension age which were expected to be announced in May have been put on hold, according to newspaper reports

 

The Government is consulting on proposals to bring forward the rise in the State Pension Age to 68 from 2044 to 2037 resulting in millions being forced to wait longer for the state pension.

The State Pension is set to see a significant boost in April with an increase predicted to be around 4%. 

The Government Actuary is suggesting a 5% rise in National Insurance by 2032 to prevent a deficit in the National Insurance Fund used to pay out state pensions, a possibility based on the latest Government Actuary Department projections.

The State Pension Pension age will reach 70 by 2063 but will rise more slowly than the Government's Autumn Statement last week suggested, according to analysis by Towers Watson.
Young workers in their early 20s may face having to work until they are 70 if the Chancellor announces a higher retirement age in his Autumn Statement today.

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