A powerful House of Lords committee has issued a stark warning to the Labour government, branding planned increases to the state pension age a "red herring" that will not solve the UK's demographic crisis.
Report Warns UK 'Strikingly Unprepared' for Ageing Society
The new report from the House of Lords' Economic Affairs Committee, published on 19 December 2025, argues the nation is "strikingly unprepared for an ageing society". It states that simply raising the Department for Work and Pensions (DWP) state pension age is not an effective solution.
The core problem, according to the committee, is that many people in their 50s and 60s leave employment long before they reach pension age. The report expresses concern that increases in the state pension age are unlikely to prompt a return to work among those approaching retirement and may instead push some into greater financial hardship.
Call for Strategy to Keep Older Workers in Employment
Committee chair, Lord Wood of Anfield, said successive governments had failed to address the "seismic effects" of a rapidly ageing population. "Raising the state pension age, which saves the government money, but increases pensioner poverty as many people have already stopped working by their sixties, is a red herring," he stated.
He emphasised that the key priority must be getting more people in their fifties and sixties to stay in or return to work. This requires a fundamental shift in how younger generations plan their futures. "They will need, from a much earlier stage in their lives, to plan and prepare to work longer and save more," Lord Wood added.
The report criticises the current lack of a published strategy or forum for discussing this long-term challenge, suggesting the issue is not being taken seriously enough.
Experts Welcome Focus on 'Transition' Years
The findings have been welcomed by retirement experts. Catherine Foot, director of Standard Life’s Centre for the Future of Retirement, said: "Longer lives are an extraordinary success story, but our policies and institutions have not yet caught up."
She highlighted the critical need for action during the complex transition from work to retirement, between the ages of 55 and 70. "People’s circumstances vary enormously when it comes to their ability to work, save and care for their families," Foot explained.
The report also notes that longer lives are creating multi-generational families, raising difficult questions about intergenerational support and wealth. The committee's final warning is clear: unless action is taken now, the UK risks worsening pension poverty in the future.
