The state pension age is currently moving from 66 to 67 in one-month increments between April 2026 and April 2028. A further rise from 67 to 68 is legislated for between April 2044 and April 2046, but the Government must review the age every six years under the Pensions Act 2014.
The last review was commissioned in 2023. An independent report by Conservative peer Baroness Lucy Neville-Rolfe suggested bringing the rise to 68 forward by three years, to 2041–2043. The then-Conservative Government did not take up any recommendations. Labour announced in July 2025 that another review would take place.
In July 2026, the Office for Budget Responsibility called for the transition to 68 to happen by 2037, seven years ahead of the current 2044 date.
Case for Increasing the State Pension Age
Alex Pugh, chartered financial planner at Saltus, said: “The financial pressure on the state pension system is growing because people are living longer and therefore, drawing the state pension for longer, and there are fewer working-age taxpayers supporting the system. Increasing the state pension age is one of the most direct ways to contain costs without overt tax rises.”
Andrew Prosser, head of Investments at InvestEngine, noted that when the basic state pension was introduced in 1948, a 65-year-old man could expect about 12 more years of life. Today he can expect around 21, and a 65-year-old woman around 24. “A system designed for roughly a dozen years of payments is now funding retirements of 20 to 30,” he said.
Prosser added: “The state pension is run on a pay-as-you-go basis, funded by today's National Insurance contributions, and the worker-to-pensioner ratio is deteriorating. The ONS projects 278 pensioners per 1,000 working age people today, rising to a level that would require pension age to climb to 70 by the 2040s simply to hold the ratio constant.”
The state pension bill is around 5 per cent of GDP, expected to rise to 7.7 per cent by the 2070s. Prosser said: “Future pensioners are unlikely to enjoy quite as generous a deal as today's retirees. Those planning their retirement should be treating the state pension as a backstop rather than the foundation of a retirement plan.”
Pugh also pointed out that the Government could increase the number of National Insurance qualifying years needed for a full state pension from 35 to 36 or 37, “which would effectively require people to contribute for longer without the immediate political fallout of a direct tax increase.”
Case for Decreasing the State Pension Age
Baroness Neville-Rolfe’s 2023 review recommended that people should expect to spend 31 per cent of their adult life receiving the state pension. Pugh said: “If average life expectancy were to fall meaningfully and permanently, there would be a legitimate argument for reconsidering the pace of increases to the state pension age.” However, she added that policymakers are likely to be cautious because short-term fluctuations do not necessarily justify reversing long-term policy.
Pugh also highlighted a social argument: “There is a social argument for pausing increases, particularly for those in physically demanding roles who may struggle to work into their late 60s. Many people also plan retirement around existing expectations, so further changes risk undermining trust and confidence in the system.”
Life expectancy for both men and women has increased over recent decades but has levelled off over the past few years, with only a slight increase over the past 15 years. It dipped during the coronavirus years and has recovered to prepandemic levels but has not grown much beyond that. Prosser said that even if life expectancy falls, policymakers would still need to consider affordability, the ratio of workers to retirees, and overall Government finances.
Early Access to the State Pension
Pension provider Aegon has called for an early access system allowing people to claim their state pension up to three years early. Kate Smith, head of pensions at Aegon, said: “We need a system that offers realistic choices, that better reflects people's lives, not a cliff-edge. An early access system could provide a vital financial bridge. Savers could choose to draw their state pension up to three years early at a reduced weekly rate.”
Smith said this flexibility should be open to everyone but is “explicitly designed to throw a lifeline to manual labourers, carers, and those battling ill health who physically cannot work until 67 or 68.” She warned that taking a reduced state pension risks dragging people into poverty, and that the Government must be prepared to think outside the box, with employers also stepping up to design flexible roles and age-inclusive workplaces.
Smith strongly opposed accelerating the move to 68: “Rumours persist that the shift to age 68 will be brought forward to the late 2030s. Accelerating this timeline is an incredibly bad idea that will unfairly shock the system and hit the most vulnerable hardest. It should be recognised that increasing the state pension age benefits the wealthiest most as they tend to live longer, not those necessarily in the most need.”
Work and Pensions Secretary Pat McFadden, who remained in post after the recent reshuffle under Prime Minister Andy Burnham, said: “There are periodic reviews of this built into the process. The state pension age has been rising in the last couple of decades. I don't want to pre-empt anything but that review is built into the process. That is the timescale.”
