What is the problem under consideration? Why is government intervention necessary?
Since the Pensions Act 2007 set the timetable for increasing the State Pension age from 65 to 68, both the demographic and the economic contexts have changed. Life expectancy is increasing faster than projected, bringing increased expenditure on pensions, social security and health, at a time when the UK is recovering from the biggest fiscal crisis in generations. The ratio of pensioners to working-age people is increasing, and the latter largely support the former through National Insurance and tax contributions. We have already brought the increase in State Pension age to 66 forward to 2020 and need to take further action now to bring forward the increase to 67.