We examine when the age is next set to increase and whether people will have to wait until they are 70 or even 80 years old to receive their state pension Does the recently announced State Pension Age Review mean it could rise more quickly in the future?
Men and women's official state pension age is 66, with plans to raise it to 67 and then 68 in the future.
The government may decide to accelerate those increases, though, as a result of the recently announced State Pension Age Review.
The Office for Budget and Responsibility (OBR) released a report that highlighted the state pension's skyrocketing costs, which has some experts speculating that the minimum age at which people can receive the benefit might need to increase to 70 years of age or older. "The dizzying heights of age 80" is what one consultant claims it could do.
Remember that your personal retirement age and the state pension age are not the same. You could decide to retire sooner. A private pension, such as a SIPP or workplace pension, is available to most people starting at age 55 (it will increase to 57 in 2028).
Therefore, before you actually reach state pension age, you could quit working entirely or move to part-time employment and begin deducting from your private pension. You could also decide to continue working after the state pension age.
In retirement, the state pension is only meant to cover a minimal level of living.
The state pension, however, continues to play a significant role in many people's retirement plans. According to research by financial services company SunLife, it is the only source of income for 24% of savers after they leave their job.
We examine the age-based expectations for when you will be eligible to receive your state pension. Additionally, could it increase more quickly than expected, and could we actually have to wait until we are 70 years old or older to receive our state pension?
In a separate article, we examine how much you need to maintain a minimal, comfortable, and moderate standard of living in retirement.
You will receive your state pension when?
The state pension age is currently 66, but it will increase a few times over the next 20 years. Between 2026 and 2028, the state pension age will increase to 67, and between 2044 and 2046, it will rise to 68 once more.
Using the tool on the government website is a quick and easy way to find your retirement age. Remember that if new laws are introduced by the government in the future, the outcome you receive today might change.
Will there be another increase in the state pension age?
Labour recently mandated that the state pension age be reviewed.
Simultaneously with the announcement, the Pensions Commission was revived to examine the "retirement crisis that risks tomorrow's pensioners being poorer than today's." Forty-five percent of working-age adults do not save any money for their pension, according to the government.
The age at which individuals can receive the state pension is subject to a six-year review by the government, which ended in 2023 and is scheduled to continue until 2029. Based on factors like the most recent life expectancy data, generational equity, and global comparisons, the review will examine whether the current state pension age is still appropriate.
Numerous experts anticipate that the review will suggest expediting the state pension age increases. The recommendations do not, however, have to be adopted by the government. Raising the age would undoubtedly save money, but it would also be criticized and might drive away Labour supporters.
According to Damon Hopkins, head of DC workplace savings at the consulting firm Broadstone, he wouldn't be shocked to see the age increase accelerate.
He remarks: "A change is unavoidable given the state pension's enormous financial cost and the aging population.
"It may be necessary to accelerate the rise to 68 in order to protect sustainability, but this needs to be supported by updated life expectancy data and a clear understanding of regional disparities," says Kirsty Anderson, retirement specialist at wealth manager Quilter.
Regarding potential future increases, the consulting firm Barnett Waddingham notes that the OBR's Fiscal Risks and Sustainability report indicates that, due to a growing retirement population in comparison to the working age population, the cost of the state pension as a percentage of GDP will double over the next 50 years.
According to Barnett Waddingham senior consulting actuary Jack Carmichael, a "massive increase in the state pension age, potentially up to the dizzying heights of age 80" would be necessary to maintain the cost of the state pension at a comparable percentage of GDP.
Numerous other experts have cautioned that raising the state pension age is necessary. According to a study released last year by the International Longevity Centre, in order to guarantee that there are enough workers to continue paying the retirement benefit, the state pension age may need to increase to 71 by 2050.
In the meantime, a different report from the London School of Economics suggested raising the state pension age to 68 "as soon as is possible" as opposed to waiting until 2044 - 2046.
What is causing the state pension age to increase?
Three years after the Second World War ended, in 1948, the basic state pension was established. Women were to retire at age 60, and men at age 65.
After reaching state pension age, the majority of pensioners were only anticipated to live for a few years at that time. Nonetheless, life expectancies have increased due to rising living standards, and some people are now retiring for up to a third of their lives.
According to the Department for Work and Pensions' 2023 review, women born in 1951 were expected to live to 81 years old, while men were expected to live to 76. It is anticipated that women born in 2020 will live to 90 years old, and men to 87.
This indicates that it is getting more and more costly for the government to pay for the state pension. The government budget's second-largest item after health care is this one.
State pension costs have already increased from 125 billion in 2023 - 2024 to 138 billion in the present, according to the OBR.
Recently, the rate of inflation hasn't helped. The amount of the state pension that retirees receive rises annually in accordance with inflation, wage growth, or 2 percent, whichever is higher. Although it is costly for the taxpayer, this triple lock helps shield pensioners from the growing cost of living.
For instance, the annual payout for individuals eligible for the full new state pension increased by 470 from April 2025.
It should come as no surprise that the state pension age is increasing when all of these factors are taken into account. Relentlessly delaying retirement for thousands of savers isn't a simple solution, though. One illustration of the issues that may arise from systemic change is the injustice that the Waspi women have endured in recent years.
What dangers come with raising the state pension age?
As the state pension age rises, an aging workforce may cause issues and is not optimal from a health or efficiency standpoint.
"People will find it more difficult to remain employed as the state pension age rises. According to Steven Cameron, pensions director at financial services firm Aegon, this could be due to their health, a physically or mentally demanding job, or caring responsibilities for elderly parents.
He continues, "We're already witnessing a rise in the number of people over 50 quitting their jobs because of poor health. A fixed state pension age that keeps rising could become more contentious and out of step with the flexible private pensions of today.
However, there are other reasons why older workers reduce their working hours besides illness. Due to their provision of free childcare, many pensioners contribute significantly to the economy.
According to Mark Screeton, CEO of SunLife, "our research shows that 59 percent of grandparents are relied upon to provide free childcare for their grandchildren, saving families a combined 90 billion in childcare costs."
"If the state pension age were to rise further or more quickly, it could have a knock-on effect on families across the UK who will no longer be able to rely on grandparents to help out as they themselves could still be working. "
Lastly, households that choose to leave their jobs before receiving their state pension will be dependent on their private pension funds for a longer period of time if the state pension age is raised.
The higher cost of living is causing many savers to already struggle with a pension shortfall at this time. A quarter of adults never anticipate retiring, according to a Phoenix Group study from the previous year. Those who fear that they will run out of money before they pass away are being forced to leave retirement.
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