The UK government has launched an early review of the state pension age, raising the possibility of future increases to the retirement age.
What Prompted the Review?
Work and Pensions Secretary Liz Kendall announced the review as part of a broader plan to examine retirement outcomes in the UK.
Legal Obligation
Under the 2014 Pensions Act, the government must review the state pension age every six years. The last review concluded in 2023.
What’s the Current Pension Age?
The state pension age is 66 for both men and women. It will rise to 67 between 2026 and 2028, and to 68 by the mid-21st century.
Fiscal Pressure Driving Changes
The UK spends around 5% of GDP on state pensions — up from 3.5% in 2000. In 2023/24, it cost £124bn.
Independent Reports Commissioned
Dr Suzy Morrissey will produce an independent report on the pension age. The government’s actuarial department will assess the share of adult life spent in retirement.
New Pensions Commission Launched
A new commission, led by Baroness Jeannie Drake, will explore ways to boost savings and improve retirement incomes.
Low Savings Among Workers
Nearly half of UK working-age adults (18 million) aren't saving for retirement. Only 1 in 5 self-employed workers contributes to a pension.
Auto-Enrolment & Future Reform
Current rules require 8% total contributions from workers and employers. The new commission will consider raising contribution rates long-term, though no increase is planned this Parliament.
Triple Lock Promise Remains
The government will maintain the triple lock, ensuring pensions rise annually by inflation, earnings growth, or 2.5% — adding £31bn/year to future pension costs.