The Department for Work and Pensions (DWP) has been urged to abolish a benefit claimed by 1.4 million people. The Tony Blair Institute (TBI) think tank has called on the DWP to scrap pension credit and eliminate the state retirement age entirely.
Under the TBI's proposed Lifespan Fund, there would be no official retirement age. Instead, individuals could decide when to start receiving their pension, which would remain guaranteed for life and provided by the state. The amount received would depend on contributions, age, health, and life expectancy, similar to how annuity rates are calculated for private pension savers.
The triple lock mechanism would be removed under the proposals, with pensions rising only in line with median earnings growth. Tom McPhail, a freelance pensions expert and scheme trustee, commented: "These proposals are a good start. A flexible state pension that helps meet people's needs before retirement and encourages later working is a good idea in principle. However, we cannot consider the state pension in isolation. We must also examine how it interacts with pre-retirement welfare and private pension savings. Reform needs to happen soon because the triple lock is unsustainable. Without change, younger generations will miss out entirely when their turn comes."
The current state pension age is set to rise to 67 by 2028 and 68 by 2046, following moves initiated during Sir Tony Blair's time in office and accelerated in 2014 under the Conservatives. State pension spending reached £146 billion in 2025-26 and is forecast to exceed £172 billion annually by the end of the decade. Under the triple lock, the new full state pension payment rates increased this year to £241 per week, meaning pensioners receive over £12,000 per year from the DWP if they have reached the current state pension age of 66 (born before 1960).
