A Department for Work and Pensions (DWP) minister has warned that state pensioners who misunderstand the state pension may face challenges. Labour Party Cabinet member Pat McFadden addressed the Work and Pensions Committee, discussing the state pension and the qualifying age.
State Pension Age Review
Mr McFadden stated: "These are difficult decisions. 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." The government announced the launch of the third review of State Pension age in July 2025. This review will consider whether the rules around pensionable age are appropriate, based on the latest life expectancy data and other evidence.
Mr McFadden told the committee: "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."
Future Changes
Discussing any future rises, with the age currently being hiked from 66 to 67, Mr McFadden 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. I have no changes to announce on that here."
As set out in the Pensions Act 2014, this review will consider evidence from two reports. It will take into account an independent report, led by Dr Suzy Morrissey, on specified factors relevant to the Review of State Pension age. Additionally, it will consider a report from the Government Actuary’s Department (GAD) to examine the latest life expectancy projections data, the DWP has previously confirmed.
