Government State Pension age review: rising UK State Pension age may push retirement to 70 - forecast news
A new government review could reshape when you can claim your pension 🕰️
- Labour is reviewing the possibility of raising the UK State Pension age to 70
- The review may tie future increases to life expectancy, following models used in countries like Denmark
- Experts warn automatic increases could create uncertainty and disrupt retirement planning
- Over-60s may need to plan for a longer working life and consider personal savings
- But immediate changes are limited: currently, the pension age rises to 67 next year and 68 by 2044-46
If you’re approaching retirement, a new government review could directly affect when you get your State Pension, and how long you might have to wait.
Labour is exploring the possibility of raising the State Pension age to 70, with the latest review examining whether future increases should be tied automatically to life expectancy, reports The Telegraph.
The review is being led by Suzy Morrissey, an expert commissioned by Work and Pensions Secretary Liz Kendall, who is exploring the “merits” of automatic adjustments.
Countries such as Denmark, Finland, Italy, and the Netherlands already link retirement age to life expectancy, and Denmark recently raised its pension age to 70. Morrissey will be studying these models to see what lessons the UK could take from them.
But what does it mean for UK pensioners and their money? How likely is it that such a radical change could be brought in? Here is everything you need to know about it.
Why might changes be made?
Life expectancy is a key factor in the debate. UK life expectancy at age 66 has continued to rise, although improvements have slowed compared with previous forecasts, partly due to pandemic-related reversals.
Current projections suggest a 66-year-old in 2050 might live until 87, compared with 90 under older 2014-based forecasts.
As mentioned above, Denmark’s approach offers one potential model. The Danish system effectively caps the amount of time anyone can spend claiming state support, legislating that the average retirement period should be 14.5 years.
By contrast, the UK aims for future generations to spend “up to a third” of adult life in retirement, a target that could mean later pensions if life expectancy continues to rise.
The review is also taking place amid long-term pressures on public finances. State Pension spending has risen 19% over the past decade and 70% over 20 years in real terms.
Politicians have previously tried to accelerate increases to reduce costs, including former Chancellor Jeremy Hunt, who attempted to bring forward the rise to 68 in the late 2030s. Declining life expectancy made the plan politically unworkable.
What does it mean for pensioners?
For pensioners in the UK, the immediate picture is less drastic. The State Pension age is set to rise to 67 from next year and is scheduled to reach 68 between 2044 and 2046.
Any increases beyond that, including the controversial age of 70, are likely at least a decade away.
But the review signals that retirement planning in the UK could become more unpredictable, particularly if automatic formulas are adopted.
How likely is a change?
Experts warn that tying State Pension age strictly to life expectancy could create “chaos” in retirement planning. Sir Steve Webb, a former pensions minister, says that different population projections could swing the retirement age by up to eight years.
“Every time the population projections are updated, this could move the dates for pension age changes by up to a decade, making it very difficult for people to plan their finances,” he adds.
Catherine Foot, director of the Standard Life Centre for the Future of Retirement, is already warning that working to the current pension age isn’t realistic for everyone.
“People aged 60-65 are experiencing the fastest-growing rate of poverty for any working-age group,” she says, citing ill health, caring responsibilities, and ageism as barriers.
Using average life expectancy to set pension age could push retirement further away for those already struggling.
For now, the review is in the evidence-gathering stage, with recommendations expected in several years’ time, but for over-60s and those planning retirement, it’s a reminder that pension timelines are not set in stone.
Those approaching retirement may need to plan for a longer working life, consider personal savings, and stay informed about potential policy shifts.
Are you struggling to make ends meet as costs continue to rise? You can now send your stories to us online via YourWorld at yourworld.net/submit. It's free to use and, once checked, your story will appear on our website and, space allowing, in our newspapers.