Changes in state pension age must be informed by considerations of why people retire when they do

The new government is proceeding swiftly with plans to raise state pension age (SPA) faster than its predecessor planned, and to abolish the default retirement age (DRA), which Labour established in 2006. Fiscal considerations lie beyond the SPA decision, while both the Conservatives and the Liberal Democrats have argued that the DRA is discriminatory. However, both changes aim to encourage people to stay in employment for longer. However, it remains the case that most people do not retire at SPA; similarly, the huge majority of people retire before becoming affected by the DRA. The Future of Retirement argues that a much wider range of factors impact on retirement decisions, and if the government is to avoid inequitable outcomes, policy must be based on an analysis on how working lives can be extended in practice.

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