The state pension age could be set to rise again, with Department for Work and Pensions (DWP) head Pat McFadden commenting on a possible update. Ongoing adjustments to the pension age have already seen a retirement age increase from 66 to 67, which came into effect on April 6, 2026. Those initially affected are individuals born between April 6 and May 5, 1960, who must wait an extra month before receiving their pension payments. However, a further hike could be approved by the government due to the ongoing review of the state pension age.
McFadden Asked About Rise to 68
McFadden was questioned by MP Damien Egan on whether the rise to 68 as the new retirement age could be implemented. Egan asked: "I have some questions on the state pension and state pension age. First, we have this date of March 29 for a review of the state pension. Are we still on track for that, and when do you expect to conduct that review?"
McFadden confirmed this date, stating: "There are periodic reviews of this built into the process. The state pension age has been rising in the last couple of decades. I do not want to pre-empt anything, but that review is built into the process. That is the timescale, and I have no changes to announce on that this morning."
Life Expectancy Concerns Raised
Committee chair Debbie Abrahams noted that the change was being made based on greater life expectancy, but this varies across the country. She said: "The Health Foundation has shown that healthy life expectancy has fallen by two years on average, and it will be worse in constituencies such as mine and yours, Secretary of State. The first Pensions Commission pegged the increase in state pension age to life expectancy."
McFadden responded: "We should consider all these factors. I am conscious of and stand by what I just said to Mr Egan about how the same age can feel different and be experienced differently by people in different parts of the country. I am not trying to duck the question when I say this, but these are difficult decisions."
He added: "You have to take into account affordability for the country, because even though it is a contributory system, it really works as a pay-as-you-go system. It has to be affordable and give people security in retirement, but it has to take into account the factors that you raise as well. We owe that to the public. It is a very delicate decision, which is why we do these careful reviews to take all these things into account."
Impact on Older Workers
Abrahams highlighted that half of 66-year-olds in the lowest income brackets are already frail, and many older people are anxious about returning to the workplace after losing a job. She questioned McFadden on what he would say to older age groups, noting that the government focuses on the young for the biggest impact.
From April 2026, the government commenced a gradual increase in state pension age from 66 to 67, to be fully implemented within two years.
