State pension age to hit 66 by 2016

Chancellor George Osborne is expected hike the state pension age (SPA) to 66 by 2016 in today’s Comprehensive Spending Review.

This will be followed by a further two year increase to the retirement age to 68 by 2038, The Daily Telegraph reports.

An acceleration in the increase in the retirement age formed part of the Conservatives pre-election manifesto. Under a Labour government, the SPA would have risen to 66 by 2026, 67 by 2036 and 68 by 2046. (article continues below)

Under current proposals, the SPA for women will be raised to 65 by 2020. It remains unclear whether the government will amend this timetable if an earlier increase in the pension age for men is proposed.