Five million more individuals may face a delay of an additional year before receiving their state pension, according to reports.
The current plan is for the retirement age to incrementally rise to 68 between April 2044 and April 2046. Nevertheless, the Conservative government has pledged to expedite this increase to 68 by 2037, up to seven years ahead of schedule.
Amid a review initiated by the Labour party last year on the state pension age, officials have emphasized that no definitive decision has been reached. However, as per The Times, Treasury officials have informed the Office for Budget Responsibility, the government’s fiscal forecaster, that the “current policy” is indeed to raise the state pension age to 68 between 2037 and 2039, rather than following the legislation established in the Pensions Act 2007.
Contrary to these claims, the Treasury has refuted the assertions, stating that the law mandates the State Pension to increase to 68 in 2044. They reiterated that in July 2025, the initiation of the third review of the state pension age was announced, as required by law.
If the increase is expedited, approximately five million people aged between 49 and 55 may have to work an additional year or wait longer before becoming eligible for their state pension, resulting in a potential loss of around £12,500 per individual. Accelerating this change could save the government about £6 billion annually from 2037 compared to the current timetable.
Catherine Foot, the director of the Standard Life Centre for the Future of Retirement, noted that the state pension plays a crucial role in the retirement income of millions of Britons. She highlighted the challenges faced by the government in balancing affordability with the increasing life expectancy of the population while ensuring fairness and adequacy for pension recipients.
Former pensions minister Ros Altmann cautioned against raising the pension age as a cost-saving measure. She suggested alternative policy adjustments such as reforming the triple lock mechanism and increasing the required years for a full State Pension, emphasizing that raising the State Pension Age could disproportionately impact the financially vulnerable elderly.
Sir Steve Webb, another former pensions minister, and a partner at Lane Clark & Peacock consultancy expressed expectations within the government that the age increase may occur seven years earlier than the current legislative timeline, potentially affecting five million individuals who could miss out on £12,500. He urged ministers to provide clarity on this matter promptly.
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