The Department for Work and Pensions (DWP) is considering bringing forward the planned rise in the state pension age, a move that could significantly affect millions of people born between 1949 and 1955. Originally, the state pension age was scheduled to gradually increase to 68 between April 2044 and April 2046, primarily impacting individuals born between April 1977 and April 1978.
However, Treasury officials have informed the Office for Budget Responsibility (OBR) that the increase could be implemented at least seven years earlier than currently legislated. This adjustment means that approximately five million people aged between 49 and 55 may be required to work an additional year before qualifying for their state pension.
Sir Steve Webb, a former Pensions Minister, noted that while the government’s pension calculator still reflects the mid-2040s timeline, there is widespread expectation within government circles that the pension age rise will happen sooner. He warned that this shift could result in these workers losing around £12,500 in benefits they might otherwise have expected.
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Sir Steve emphasized the need for clear communication from ministers and indicated that any change planned for 2037 would require legislation to be passed as early as next year.
Paul Johnson, former director of the Institute for Fiscal Studies, advocated for prompt legislation if the government intends to accelerate the pension age increase. He explained that modest adjustments to the pension age are necessary to keep pace with rising life expectancy and strengthen the government’s long-term fiscal outlook. Additionally, he suggested that reforms to other pension-related policies, such as the triple lock mechanism, will be essential for maintaining the sustainability of the state pension system.
The Treasury clarified that advancing the pension age is not new information, stating that the previous government had publicly committed to raising the state pension age to 68 between 2037 and 2039—a position the OBR has acknowledged for years. A state pension age review is currently underway, and the government stressed it would not pre-empt the outcome of this review.