The issue has prompted political debate after ministers stressed that no final decision has been taken. At the same time, the government’s ongoing review of the state pension age continues to examine how future increases should be scheduled.
The current legal timetable will see the state pension age rise from 66 to 67 between 2026 and 2028. It is then legislated to increase to 68 between 2044 and 2046. According to reports, Treasury officials have told the OBR that the government’s current policy position is to bring the increase to 68 forward to between 2037 and 2039, around seven years earlier than existing legislation.
If implemented, the earlier timetable would affect approximately five million people who are currently aged between 49 and 55. According to the reports, those individuals would need to wait an additional year before receiving their state pension, representing a loss of roughly £12,500 in payments compared with the current schedule.
Government Says No Decision Has Yet Been Made
The reports prompted a response from Pensions Minister Torsten Bell, who rejected suggestions that the government had announced a new policy. Writing on X, Bell said the legislation currently sets out that the state pension age will rise to 68 during the 2040s and added that the previous Conservative government had proposed bringing the increase forward to the late 2030s.
A government spokesperson also said the reports did not contain new information. According to the government, the previous administration had publicly committed to increasing the state pension age to 68 between 2037 and 2039, and the OBR has reflected that position for several years.
The spokesperson added that the State Pension Age Review is currently under way and that ministers cannot pre-empt its findings. The review was commissioned last year and is examining the timetable for future changes to the pension age, including whether automatic increases linked to life expectancy should be considered.
Review Examines Long-Term Pressures on the Pension System
The review is taking place against the backdrop of demographic changes that officials believe will place increasing pressure on public finances. According to the information provided by the government, rising life expectancy combined with lower birth rates is expected to increase demand for health and social care as the population ages.
It is estimated that one quarter of the UK’s population will be aged 65 or older by 2050. Suzy Morrissey, who is leading the independent review, has said she will examine how other countries have approached retirement age reforms. Those include Denmark, which has already raised its retirement age to 70, as well as Finland, Italy and the Netherlands, where mechanisms linking retirement age to life expectancy are already in place.
The reports have also highlighted concerns raised by some pension specialists. They argue that automatically increasing the retirement age could create uncertainty for people planning their retirement, while others have called for greater clarity if ministers intend to legislate for any earlier increase. For now, the existing legislation remains unchanged as the government’s review continues.
