The state pension age increase to 68 could be brought forward by seven years, according to reports, with the change potentially taking effect between 2037 and 2039 instead of the originally scheduled 2044 to 2046.
The current timetable, set out in the Pensions Act 2007, states that the state pension age will rise to 68 between 2044 and 2046, affecting those born on or after April 6, 1977. However, a government review currently underway is said to be considering an earlier implementation.
Reports suggest the age rise could be moved forward to between 2037 and 2039, impacting individuals born between April 1970 and April 1977. This change would require confirmation by 2027, a period when Labour Party government prime minister Andy Burnham is in office.
Current state pension age increases
The state pension age is currently 66 for both men and women. It is set to rise to 67 between May 2026 and April 2028, with those born on or after April 6, 1960 affected by this phased increase.
Under the Pensions Act 2007, the age is then expected to rise again to 68 between 2044 and 2046. However, the review could alter this timeline.
The government is required to review the state pension age at least once every six years to ensure it remains appropriate, considering factors such as life expectancy. The current review is ongoing, and reports indicate the increase could happen sooner than initially planned.
Impact on those born 1970-1977
If the rise to 68 is brought forward to 2037, it would affect people born between April 1970 and April 1977. This group would see their state pension age increase earlier than previously expected, potentially requiring them to work longer or adjust retirement plans.
The exact timeline for changes depends on an individual's date of birth. Those born on or after April 6, 1960 will see their state pension age rise to 67 between April 2026 and April 2028. Those born on or after April 6, 1977 are currently scheduled to see the increase to 68 between April 2044 and April 2046.
Review process and political context
The review of the state pension age is a statutory requirement, and the government must consider the latest life expectancy data. The decision to bring the increase forward would need to be legislated, and the timing suggests it could be confirmed before the next general election.
Andy Burnham, as prime minister, would oversee this change. The reports come amid broader discussions about pension sustainability and the financial pressures on the state pension system.
According to current regulations, the government must review the state pension age at least once every six years. The ongoing review is expected to conclude with a decision on whether to accelerate the increase.
What this means for pensioners
For those affected, the earlier increase would mean a later retirement age than previously anticipated. This could have significant implications for financial planning, with individuals needing to consider how to bridge the gap between their planned retirement and the new state pension age.
The change would also affect the Department for Work and Pensions (DWP) budget, potentially reducing the amount paid out in state pensions in the short term. However, it would also mean that individuals would need to rely on other sources of income for a longer period.
As the review progresses, further details are expected to emerge. For now, the reports suggest that the state pension age rise to 68 could come into effect seven years earlier than scheduled, a change that would have wide-ranging implications for millions of people.
