The Treasury is reportedly considering bringing forward the planned rise in the state pension age to 68, which would see it arrive years ahead of the current 2044-2046 timetable. If the change goes ahead, around five million people born after 6 April 1977 could end up waiting longer than they have been planning for to claim their state pension.
Nothing has been decided yet, and by law any change requires at least ten years' notice, so anyone due to retire in the next decade does not need to panic. Still, the fact that the option is being discussed is a useful reminder that the state pension should not be the foundation of an entire retirement plan.
Why the state pension is back under review
The triple lock has been generous in recent years. The state pension rose by 4.8% this April, taking the full new state pension to £241.30 a week. That is a significant amount of money, but generous while it lasts is not the same as guaranteed forever.
With a new Prime Minister in Downing Street and a Budget on the horizon, pension policy is exactly the kind of area that gets reviewed when governments look for savings. It is a good moment to avoid building your whole retirement around a policy that politicians can, and periodically do, adjust.
What to check in your pension
If you have a workplace pension or a SIPP, now is a sensible time to review two things. First, whether your contributions are enough to reduce your dependence on the state pension filling the gap. Second, whether your pension is properly diversified, rather than sitting in one or two funds you set up years ago and have not looked at since.
Diversification matters more as you get closer to retirement, because that is when you have the least time to recover from a poor run in any single asset.
