Government shelves plans to bring state pension age to 68 sooner than planned

The government has shelved plans to bring the state pension age to 68 sooner than planned, according to Which?¹. The latest review of the state pension age confirmed that the rise to 67 between 2026 and 2028 will take place as planned, and that another review will be carried out within two years of the next Parliament to reconsider the rise to 68¹.

The state pension age is currently 66 for both men and women¹. Between 2026 and 2028 it will gradually rise to 67 for those born on or after April 1960, with another gradual rise to 68 between 2044 and 2046 for those born in or after 1977¹. The Pensions Act 2014 requires the Secretary of State for Work and Pensions to regularly review the state pension age, informed by life expectancy data, the economic position and labour market, and the latest demographic trends¹. The government added it was committed to the principle of providing people with 10 years' notice of changes to the state pension¹.

The shelving of the earlier rise to 68 was reported in March 2023¹. Which? states that the next review means the issue can be expected to be looked at again in 2026¹.

Separately, the International Longevity Centre's Healthy Ageing and Prevention Index claimed the retirement age may need to rise to 71 by 2050 for middle-aged workers across the UK¹. Its analysis found that at a pension age of 65, a ratio of 20% equates to five workers per one retiree, but the UK and at least 20 other countries are on track for a ratio of 50% by 2050, meaning just one worker per one retiree¹. The report claimed poor health is one of the key reasons workers leave the workforce before reaching state pension age, and that by the age of 70, only 50% of adults are disability-free and able to work¹.

In response to the report, a Department for Work and Pensions spokesperson said¹:

The spokesperson added that the £2.5 billion Back to Work plan is supporting people to stay fit and find work, in addition to £14.1 billion to improve health services¹.

Why it matters for households

The state pension age determines when someone can access their State Pension, which may make up a large part of retirement income¹. The confirmed rise to 67 between 2026 and 2028 affects those born on or after April 1960¹. The rise to 68 between 2044 and 2046 affects those born in or after 1977¹. No change to the 68 timetable has been announced beyond the commitment to review it again within two years of the next Parliament¹.

Which? reports that pension experts broadly agreed raising the state pension age would be a shock for many, and that Pension Bee described it as an "alarming prospect" that could lead to a greater pre-state pension gap, where people use private pensions to support them for longer before receiving their state pension¹. Becky O'Connor, director of public affairs at Pension Bee, said there is a risk people could use up too much of their private pension savings early in retirement if they had to stop work before state pension age, possibly leading to greater poverty in later old age¹. Aegon urged political parties to detail their state pension plans ahead of the next general election¹.

Which?'s cost-of-retirement survey found a household of two needs an income of at least £28,000 a year for a "comfortable" retirement, and it estimates £115,000 to £131,000 would be needed in private pensions to generate that income¹. It also notes that people can check their State Pension forecast, which shows an estimate of how much State Pension they could get and their qualifying years of National Insurance contributions¹.

What happens next

The latest review confirmed the rise to 67 between 2026 and 2028 will take place as planned, and that another review will be carried out within two years of the next Parliament to reconsider the rise to 68¹. Which? states this means the issue can be expected to be looked at again in 2026¹.