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Chancellor Jeremy Hunt announced in the Autumn Statement a review of the state pension age would be published in early 2023. The current plans are for the age to increase to 67 by 2028 and then to 68 by 2039, but some analysts are predicting the policy could be brought forward.
Steven Cameron, pensions director at Aegon, said it’s important for Britons to know the age when they will be able to claim their state pension.
He commented: “We’ll hear more in the new year on the future age at which people can draw their state pension.
“There is speculation this could go up to age 68 earlier than planned, possibly from the early to mid 2030s.
“The state pension is a significant part of most people’s retirement income so it’s important to understand when you’ll receive it so you can plan ahead to make sure you have adequate private or workplace pensions.”
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The pensions expert said previously increasing the state pension age will be a “major concern” for people who feel unable to work into their 60s.
He warned: “The higher the state pension age, the more individuals will struggle to stay in full-time work. This could be because of their health, a physically or mentally taxing job or caring responsibilities for elderly parents.
“We’re already seeing increasing numbers of over 50s exiting the workforce due to ill-health. An ever-rising fixed state pension age could become increasingly divisive and out of sync with today’s flexible private pensions world.”
Tom Selby, head of retirement policy at wealth advisers AJ Bell, previously warned the state pension age will likely rise beyond 68.
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He told Express.co.uk younger workers should prepare for receiving their state pension at an even later age, saying: “They should prepare to receive their state pension from age 70, or potentially at an even later date.”
People on the state pension are to receive a welcome payment boost next year, as pension payments will increase by 10.1 percent.
This means the full new state pension, which is currently £185.15 a week, will increase to £203.85.
Those on the full basic state pension will see their payments go up from £141.85 a week to £156.20.
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The triple lock policy guarantees the state pension increases each year in line with the highest of 2.5 percent, the rise in average earnings or inflation.
Chancellor Jeremy Hunt announced the policy would be reinstated this year, meaning a 10.1 percent payment increase in line with the September figure for inflation.
Mr Cameron warned the future of the policy is in doubt. He said: “The state pension is paid for by those of working age through their National Insurance and the 2023 increase comes with a very high price tag.
“There’s a big question over whether the triple lock can be sustained in future years, when both price inflation and earnings growth are high and subject to sharp changes.”
Jonathan Watts-Lay, from pensions planning group WEALTH at work, said he thinks the policy will only last a few more years.
He told Express.co.uk: “If you follow through the logic of it naturally, if the triple lock stayed year after year, the state pension would run away.
“You would have people retiring, relative to the average earner, seeing the value of what they’re getting going up and up.
“Arguably with an ageing population, the state couldn’t afford that anyway in the longer term. I think it will stay for three or four years but I think it will ultimately go.”
