A petition calling for the State Pension age to be lowered to 65 has received more than 6,000 signatures. The appeal, posted on Parliament's petitions website on September 16, had been signed by 6,699 people as of Saturday night, September 26.
The petition urges the Government to reduce the age so people "can retire with dignity and avoid hardship". Michelle Gill, who started the petition, also argues that lowering the age could free up jobs for youngsters entering the labour market. She adds: "Many aged 65–67 face poor health, caring pressures, and limited work options, which we think is unfair".
Parliamentary thresholds
If the petition receives 10,000 signatures, the Government will have to respond to it, but if it gets 100,000, then it will be considered for a debate in Parliament. The petition will stay open until March 16.
The petition comes after the State Pension age started to increase from 66 to 67 on May 6. Anyone born between April 6, 1960, and April 5, 1977, are likely to be affected. For those born after April 5, 1977, the State Pension age is set to rise to 68 under current plans.
Government review and triple lock
The Government is currently reviewing the State Pension age, something it has to do at least once every six years under the Pensions Act 2014. Ministers of successive governments have argued a rise is needed as people are living longer, the cost to the exchequer of the State Pension is rising and an increase means its cost is more evenly shared between pensioners and the younger workers who fund it.
Official earnings growth figures suggest the full new state pension could rise to around £13,036. Under the triple lock guarantee, the State Pension rises every April in line with whichever is the highest out of total earnings growth in the year from May to July of the previous year, CPI (Consumer Prices Index) inflation in September of the previous year, or 2.5%.
Tax implications
There have been suggestions that cracks in support for the triple lock policy may be emerging as pensioners are pushed over the personal tax allowance. This is currently £12,570, so below the estimated £13,036 value of the new State Pension. It means state pensioners would be caught within the tax net for the first time.
The Government has so far said pensioners who are wholly dependent on the new State Pension – with no private pension – or the old basic pension, with no increments, will not have to pay tax. However, pension experts have said that how the policy will work is not yet clear. The Government is expected to set out further details in the Budget.
