The State Pension age is set to start increasing from 66 to 67 next year, with this transition set to be completed for all men and women across the UK by 2028
The government is being urged to allow major changes with its new review (Image: Getty Images)
The UK Government announced proposals for the third independent assessment of State Pension age in July 2025. This review will examine whether existing pensionable age rules remain appropriate, utilising the latest life expectancy data and supplementary evidence.
The State Pension age is set to start rising from 66 to 67 next year, with this shift anticipated to be completed for all men and women across the UK by 2028. The proposed alterations to the official retirement age have been embedded in legislation since 2014, with a further rise from 67 to 68 scheduled for rollout between 2044 and 2046.
A crucial milestone in the review took place recently when the call for evidence to establish the primary factors the UK Government should consider when determining the future State Pension age closed on October 24. Pension experts have warned that it is vital the independent report takes into account an ageing population, private savings levels and ensures it achieves a balance between fairness, adequacy and sustainability, reports the Daily Record.
They also suggest that individuals should receive a minimum of 12 years’ advance notice before any State Pension increases, allowing them to prepare accordingly. An additional recommendation proposes that people should have the option to “take it a little early, subject to a reduction in yearly amount to make it financially fair” Steven Cameron, pensions director at Aegon UK, said: “The third independent review into the State Pension age is exploring how changes in life expectancy, along with other factors, should be reflected in future changes to the State Pension age.
“The State Pension Age is increasing to 67 by 2028, with a further increase to 68 pencilled in for the early 2040s. Alongside private and workplace pensions, millions of people rely on the State Pension as the bedrock for their retirement income.
“But this very valuable benefit comes at a high cost, covered on a ‘pay as you go basis’ from taxes and National Insurance of today’s workers. The overall State Pension costs depend on how many years people receive it for.
“When life expectancy is improving, there’s always pressure to increase the State Pension Age. But the other key factor is the yearly amount, which is currently increased each year in line with the Triple Lock. Life expectancy is one, but not the only factor, to take into account.”
He continued: “The Government instructed the review to assume the Triple Lock will continue indefinitely. This will add pressure to increase the State Pension age further and faster, despite needing to be reformed at some point to stop state pensions eventually catching up with average earnings. We’ve urged the review team to look at different scenarios here.
“An increase in life expectancy across the population can hide many disparities between groups based on individuals’ health. It’s also recognised that average life expectancy varies hugely between different parts of the country, reflecting different socio-economic conditions and opportunities.
“Those with the lowest life expectancies suffer most from an increase in State Pension Age – having to wait an extra year is a bigger loss if you have say 5 years to live, compared to someone with 30 years ahead.”
The independent review will also consider whether Britain should follow certain other countries by introducing an ‘Automatic Adjustment Mechanism’ for State Pension age.
Cameron warns that this would strip decisions away from politicians, declaring “this needs to be treated with caution”.
He continued: “The Triple Lock automatically adjusts the State Pension amount, so a further mechanism that automatically adjusted the State Pension age would leave future governments with very little means of controlling future costs. The age at which you can draw your State Pension has a huge impact on individual retirement plans, even for those with substantial private or workplace pensions.
“We believe people should be given at least 12 years’ notice before any increases, so they can plan ahead. We also believe that if the State Pension age increases further, people should be given the option to take it a little early, subject to a reduction in yearly amount to make it financially fair.”
