Spending on public pensions, that is, social welfare pensions and public service occupational pensions, is projected to increase from approximately 5.5% of GDP in 2008 to almost 15% by 2050. Growing numbers of people want to work or may need to work beyond State pension age. Increasing the State pension age is one of the ways in which we can sustain the pensions system, maintain the value of the State pension and support people to remain in the workforce. The approach I am legislating for today is for the gradual increase of State pension age to 68 years. This will begin in 2014 with the standardisation of State pension age at 66 years. State pension age will be increased to 67 years in 2021 and to 68 years in 2028. It is worth noting that, until the early 1970s, the qualifying age for the State pension was 70 years.

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