Specifically, the government is asking (1) What mechanism should be used to determine future increases in State Pension age? and (2) How should the Government respond to the frequent revisions in life expectancy projections while giving individuals sufficient time to prepare? The paper suggests some possibile mechanisms, such as increasing the age through a formula linked to life expectancy, or alternatively increasing the by puting in place a review at regular, pre-determined intervals.
As noted in an article in The Telegraph before the paper's release:
However Mr Duncan Smith said the Government was preparing to increase the retirement age further because people are living longer and "don't feel like retiring at 65".Sources: Department for Work and Pensions Press Release (April 4, 2011); The Telegraph "Most of us want to work beyond 65, says Iain Duncan Smith" (April 3, 2011); Age UK "Default retirement age scrapped from today" (April 6, 2011)
Mr Duncan Smith told the Murnaghan programme on Sky News: "The last Government already set projections to 67, 68 ... and we are revising those to look again.
“There is no question, no point in hiding the fact that retirement will have to move over a period, obviously to help people adjust, for two reasons.
"First of all, because we are living longer, most people don't feel like retiring at 65. We have many, many thousands now choosing to work beyond 65 and that's why we lifted that thing called the default retirement age, where you could be forced into retirement."