UK state pension age review needed to ensure system is 'sustainable and affordable'

Daily Record

22-07-2025

Rachel Reeves said it was "right" to look at the age at which people can receive the state pension as life expectancy increases
Rachel Reeves has insisted a review into raising the state pension age is needed to ensure the system is "sustainable and affordable".
The UK Government review is due to report in March 2029 and the Chancellor said it was "right" to look at the age at which people can receive the state pension as life expectancy increases.
The state pension age is currently 66, rising to 67 by 2028 and the Government is legally required to periodically review the age.
The Chancellor said today: We have just commissioned a review of pensions adequacy, so whether people are saving enough for retirement, and also the state pension age.
'As life expectancy increases it is right to look at the state pension age to ensure that the state pension is sustainable and affordable for generations to come. That's why we have asked a very experienced set of experts to look at all the evidence."
Shirley-Anne Somerville, the Scottish Government Social Justice Secretary, said Holyrood ministers had consistently warned the UK Government against raising the State Pension age more quickly than is needed.
The SNP MSP added: "I welcome the fact the UK Government has committed to gathering more evidence before making any final decisions on a timeline.
"We look forward to the UK Government sharing their proposals with us and we will respond in due course. I am particularly keen to see that the difference in average life expectancies found across regions in the UK is fully considered. Otherwise, generations may be left behind, just as they have been before.
"While state pension policy is reserved to the UK Government, we are committed to enabling older people to have a dignified retirement.
The review was announced by the Department for Work and Pensions on Monday and will involve an independent report, led by Dr Suzy Morrissey, on specified factors relevant to the Review of State Pension Age along with the Government Actuary's Department's examination of the latest life expectancy projections data.
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: 'There will be many factors that need to be assessed during this review of the state pension age.
'One of the most important will be healthy life expectancy which according to the latest data hovers in the early 60s.
'This means the reality is that many people will face real difficulties in continuing to work until their mid-to-late 60s and could face a sizeable income gap while they wait to receive their state pension.'
Rachel Vahey, head of public policy at AJ Bell, said: 'An ageing population places an increasing burden on taxpayers, with state pension costs rising and fewer working-age taxpayers to cover the cost.
'Future governments will hope that an improved economy and growing tax receipts will help alleviate some of the pressure. But that can't be guaranteed and there needs to a be a credible plan for maintaining affordability.'