The Government is expected to bring forward plans to increase the state pension age to 68, with the change now likely to happen between 2037 and 2039 instead of the current timetable of 2044 to 2046.
A formal review into the state pension age is still under way, but reports suggest ministers have already decided to accelerate the timetable.
If confirmed, the move would affect millions of people who are currently in their late forties and early fifties. Many had expected to receive their state pension at the age of 67 but could now have to wait another year.
The full new state pension is currently worth up to £12,550 a year and remains the main source of retirement income for many people across the UK.
The state pension age is already increasing. Since April this year, it has begun gradually rising from 66 to 67, with the transition taking place over several years.
Rather than increasing all at once, the qualifying age is rising by one month at a time until April 2028, when everyone reaching retirement age will qualify at 67.
For example, someone born between 6 April and 5 May 1960 will receive their state pension at 66 years and one month. Those born between 6 May and 5 June 1960 will qualify at 66 years and two months, with the age continuing to rise in monthly increments.
Anyone born on or after 6 March 1961 will reach state pension age at 67 under the current timetable.
The next planned increase to 68 is already written into law for between 2044 and 2046. However, if ministers press ahead with the earlier timetable, the change would instead take place between 2037 and 2039, affecting an estimated five million people.
Two previous independent reviews recommended bringing the increase forward, although the previous Conservative government chose not to act and postponed a decision until after the general election.
Under current legislation, the Government must review the state pension age every six years. Two fresh reviews are now taking place, including one by the Government Actuary’s Department and another by an independent expert, both of which will advise ministers on when the increase to 68 should happen.
The Government has previously said people should receive at least ten years’ notice before any increase to the state pension age takes effect. If the target date is 2037, an announcement could be made as early as next year.
Changes are also planned for private pensions. From 6 April 2028, the minimum age at which most people can access workplace and private pension savings will rise from 55 to 57. This is designed to remain around ten years below the state pension age.
Looking further ahead, there are growing concerns that younger generations could face even later retirement ages as people live longer and the UK’s population continues to age.
Experts have warned that the rising cost of funding the state pension, particularly under the triple lock, may place increasing pressure on future governments to raise the pension age again. Some forecasts suggest it could eventually reach 74 by 2069 if current trends continue.
The triple lock guarantees that the state pension rises each year by whichever is highest out of inflation, average earnings growth or 2.5 per cent. Labour has pledged to keep the policy in place throughout this Parliament.
However, the long term cost of maintaining the triple lock is expected to remain a major political issue. Supporters argue it protects pensioners from rising living costs, while critics say increasing the state pension age to pay for it can have a greater impact on people in poorer health and those with shorter life expectancies.