The Department for Work and Pensions (DWP) is facing renewed scrutiny over the future of the UK state pension age, with the newly elected Labour government endorsing a long-anticipated review. The decision follows mounting concerns over rising life expectancy, fiscal sustainability and the growing gap between working-age populations and retirees.
This review comes as the current legislation—passed in 2014—still includes plans to raise the state pension age from 67 to 68 between 2044 and 2046. Although these changes were agreed under previous governments, today’s economic conditions, labour market trends and demographic realities have prompted calls to reassess the timeline.
Policy Under Pressure Amid Demographic Shift
The review, according to the DWP, will focus on long-term costs, life expectancy, and the balance of generational fairness. The scale of the challenge is growing: by 2070, the number of state pensioners in the UK is expected to rise by five million, compared to an increase of just one million working-age individuals, according to Patrick Thomson, Head of Research Analysis and Policy at Phoenix Insights.
This imbalance is placing significant pressure on public finances. “The state pension remains at a critical juncture,” Thomson noted, warning that decisions about its future must now account for the deteriorating affordability of the triple lock system, which guarantees pensions rise in line with inflation, average earnings, or 2.5%, whichever is highest.
While a higher pension age might relieve some fiscal stress, recent revisions to life expectancy projections suggest more caution may be needed. Some experts argue that accelerating the increase to age 68 into the early 2040s could affect up to three million people, many of whom may struggle to remain in work through their late sixties.
Calls for Support Beyond Age Changes
Several policy commentators have emphasised that changes to the pension age should not come in isolation. According to Phoenix Insights, the UK spends a lower proportion of public funds on pensions compared to most OECD countries. This raises concerns about retirement adequacy, particularly for those on low incomes or with incomplete national insurance records.
Thomson argued that any future reforms must be accompanied by stronger policy interventions, including expanding auto-enrolment for private pensions and encouraging flexible working opportunities for older adults. Without such support, a higher pension age could deepen inequalities among those approaching retirement.
