Millions face working longer as UK plans to bring forward state pension age rise to 68
Treasury officials have reportedly told the Office for Budget Responsibility (OBR), the government’s fiscal forecaster, that proposals for the state retirement threshold to rise to 68 will be brought forward.
According to the Department for Work and Pensions (DWP), the state pension age will change for anyone born after April 6, 1977, forcing around five million people to work a year longer.
Currently, the retirement age for those in the UK is increasing from 66 to 67, a transition that’s taking place gradually over the course of two years, between April 2026 and 2028.
It comes after ministers launched a review of the state pension age in a bid to fill the government’s multi-billion-pound black hole, with the review helmed by Suzy Morrissey, deputy director of the Pensions Policy Institute.
However, the new proposals being brought forward will see the state pension age gradually rise to 68 between April 2044 and April 2046.
According to The Times, the “current policy” will see an increase in the retirement age brought forward by at least seven years, to 2037.
Those set to be affected by the rise are currently aged between 49 and 55, with the rise ultimately costing individuals around £12,500.
Such a rise would save the government £6 billion a year from 2037 compared to the current timeline.
The OBR told the outlet: "We assume that the state pension rises to 68 in 2037-39.
"The Treasury has confirmed to us that this is the government’s current policy position, rather than the legislated increase set in the Pensions Act 2007.”
A government spokesperson said:"The previous government publicly committed to raising the State Pension age to 68 between 2037 and 2039, and the OBR has reflected that position for years.
“The State Pension age Review, which will consider what the timetable for State Pension age should be in the coming decades, is currently underway and we cannot pre-empt the outcome.”
It comes after the government faced calls to increase Universal Credit for 66-year-olds as the state pension age rises to 67 earlier this month.
MPs had warned that many people could face financial hardship during the extra year they must wait for their pension.
The Work and Pensions Committee has backed proposals to boost Universal Credit for those aged 66, urging ministers to consult on the change and introduce it by the end of 2026 as a temporary measure while longer-term support is developed.
MPs said many people who are unable to continue working until 67 risk being left on the standard Universal Credit rate of around £425 a month, forcing some to rely on retirement savings before they can access their state pension.
Politics Editor
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