The UK state pension age is set to rise from 66 to 67 from next year, with a further increase to 68 planned by 2046. Experts now warn these thresholds could climb much higher, potentially reaching 80 by the 2070s according to a study by consultancy Barnett Waddingham.
Nearly three million people could be impacted if the Department for Work and Pensions brings forward the increase to age 68 to the early 2040s. Patrick Thomson, head of research analysis and policy at Phoenix Insights, warned: «Bringing forward the State Pension age increase to age 68 to the early 2040s would impact nearly three million people and not everyone will be able to work to a later State Pension age.»
Growing concern over vulnerable workers
Former Pensions Minister Baroness Ros Altmann sharply criticized the potential changes. She warned: «It would hurt the most vulnerable older people who are in poor health, who may never get a state pension at all despite decades of contributions. It also hurts those older people who cannot work either because they can't find a job in our job market still riddled with age discrimination, or are caring for a loved one and have no private pension to tide them over to the later state pension starting age.»
The debate centers on fiscal sustainability versus individual hardship. Life expectancy in the UK for young adults rose by 17 years during the 20th century, while the state pension age remained unchanged. Stuart McDonald, partner at LCP, noted this has created historically long retirements.
Automatic increases debated
Steven Cameron from pensions provider Aegon cautioned against automatic pension age adjustments. «With the triple lock automatically adjusting the state pension amount, a further mechanism that automatically adjusted the state pension age would leave future governments with very few levers to control future costs,» he said.
Sir Steve Webb, former Liberal Democrats Pensions Minister, told the Telegraph newspaper: «As a result, changes to pension ages are always likely to have an element of judgement and unlikely to follow a neat and simple formula.» Another state pension age review is expected during the current parliamentary term.
Note: This article was created with Artificial Intelligence (AI).
