State pension warning as retirement age could rise to 70 in ‘unavoidable’ move

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For the state pension age, it appears the only way is up, with gradual increases planned over the next few years. The state pension age is currently 66, but two further increases are set out in legislation. A gradual rise to 67 is already being set in motion, and an increase to 68 between 2044 and 2046 is planned.

The cost of the state pension has tripled since 2000, and now stands at a staggering £100billion per year.

But if the state pension age continues on the same trajectory, there are concerns it will be unaffordable.

Consequently, the ILC has said an acceleration to 70 is likely to be necessary.

Professor Les Mayhew, Head of Global Research at ILC, and Professor of Statistics at Bayes Business School, added: “Deciding state pension age is not a trivial matter. 

“The decisions made in the latest review will impact on the incomes of everybody, whether that be via pension benefits or taxes. 

“Frankly, we’re probably going to have to increase state pension age further between 2030 and 2045 for it to be intergenerationally fair and fiscally sustainable.”

In the Government’s current review, a wide range of evidence is to be considered when making the ultimate decision.

This will include life expectancy, regional differences and state pension expenditure.

However, the inevitability of a rise to 70 appears to be a sentiment shared by other experts.

In 2021, Tom Selby, senior analyst at AJ Bell, remarked: “Younger savers should plan assuming they might not get their state pension until 70 or even beyond.”

Adrian Lowery, personal finance expert at Bestinvest, debated the future of the state pension itself.

He added: “While it is unlikely that a weakened Tory Government will want to inflict such grim news on some of its core voters, reports like this support the suspicion that the state pension in current form cannot be taken for granted.

“Sooner probably rather than later, a Government will bow to the inevitable and push the SPA back further and the triple lock is already under intense Treasury scrutiny – something that is not going to relent. 

“All this means that the onus of saving for retirement falls increasingly on the individual and their private pension provisions. And the worth of the current state pension is not to be underestimated.”

A DWP spokesperson recently told Express.co.uk: “The state pension continues to provide the foundation for retirement planning and financial security in older age.

“The Government is required by law to regularly review state pension age and recently launched the second state pension age review. 

“The review will consider whether the rules around state pension age are appropriate, based on a wide range of evidence including latest life expectancy data.”



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