The state pension system is expected to change
12:18, 17 Aug 2025Updated 12:20, 17 Aug 2025
WIGAN, ENGLAND – JULY 14: Rachel Reeves, UK chancellor of the exchequer, takes part in a Lego therapy session during a visit to Westleigh Methodist Primary School on July 14, 2025 in Wigan, England. Chancellor Rachel Reeves is launching The Better Futures Fund, which will support 200,000 vulnerable children, young people, and their families in England. (Photo by Anthony Devlin – WPA Pool/Getty Images)
Experts have suggested that the State Pension Age could be set to rise to 70 years old, meaning individuals will have to work significantly longer before they can retire. Chancellor Rachel Reeves has indicated that a review into increasing the state pension age is necessary to ensure the system remains “sustainable and affordable”.
The Government’s review is scheduled to report in March 2029, and Ms Reeves believes it is “right” to examine the age at which people can start receiving the state pension as life expectancy continues to increase. The current state pension age is 66, but this is set to increase to 67 by 2028, and the Government is legally obliged to review the age periodically.
Speaking to Newspage, Samuel Mather-Holgate, an independent financial adviser at Mather and Murray Financial, said: “The state pension system is ripe for squeezing, so an increase to the state pension age is coming down the tracks, probably to 70. Changing the triple lock would save a fortune, but it would be politically difficult as the older generation votes.”
The pension system currently accounts for nearly 5% of the UK’s GDP, a figure expected to rise to almost 8% within the next half-century. The Office for Budget Responsibility (OBR) has warned that the cost will exceed previous estimates by £10bn annually.
A Government review of the state pension age is due to be published in 2027, reports Lancs Live.
Unions have warned that any rise in the pension age could trigger strikes.
Eddie Dempsey, the general secretary of the Rail, Maritime and Transport union, stated: “The UK state pension is already one of the worst in the entire developed world, which is a direct result of decades of governments transferring both our national and personal wealth to the super rich.
“Any decision to squeeze more out of working people by forcing us to work even longer would be a national disgrace.”
He added: “Our members work in physically demanding, round-the-clock, safety-critical jobs. Many already struggle to reach retirement in good health, especially shift workers.
“Raising the pension age even further isn’t just cruel and unnecessary, it’s a slap in the face to the very people who keep this country running.
“If this government makes any move to drastically increase the retirement age, we intend to lead our movement onto the streets and will not hesitate to protest nationally and take co-ordinated direct action.”
However, a Government spokesperson responded: “Supporting pensioners is a top priority, and thanks to our commitment to the triple lock, millions will see their yearly state pension rise by up to £1,900 by the end of this parliament.
“We have also run the biggest-ever campaign to boost pension credit take-up, with nearly 60,000 extra pensioner households being awarded the benefit, worth on average around £4,300 a year.
“But we know there is a real risk that tomorrow’s pensioners will be poorer than today’s, which is why we are reviving the Pension Commission, to tackle the barriers that stop too many people from saving.”