UK Launches Review into State Pension Age Amid Pensioner Poverty Concerns
Review Announced: Work and Pensions Secretary Liz Kendall has initiated a fresh review of the State Pension age, warning that without major change, the UK risks a “tsunami of pensioner poverty”.
Current Schedule: The State Pension age is now 66, set to rise to 67 by 2028 and to 68 by 2046
House of Commons Library.
Driving Forces:
Fiscal Pressure: With pension costs ballooning, partly due to the “triple lock” guarantee which alone costs about £31 billion annually, the government is under intense financial strain
The Independent.
Rising Poverty: Analysis by Age UK suggests retirement incomes could fall by around £800 annually by 2050, with 2 million current pensioners already living in poverty.
Think-Tank Insights: The Institute for Fiscal Studies (IFS) and NIESR indicate that accelerating the rise in pension age would ease long-term fiscal burdens, though such moves remain politically challenging.
Low Savings Warning: Official data shows that nearly half of working-age adults aren’t saving for retirement. Over three million self-employed and 75% of low-income private-sector workers are failing to contribute to pensions.
Next Steps: An independent commission will report by 2027 with recommendations on improving retirement income, though it won’t directly reassess the triple lock or pension age timing.
In summary: Facing rising pension costs and worrying levels of pensioner poverty, the government is revisiting the retirement age timetable, potentially speeding it up, to ensure long-term sustainability and fairness.