Overview
- This week the Office for Budget Responsibility used a Treasury assumption that the state pension age could rise to 68 between 2037 and 2039, a modelling input not a government decision but one that has intensified debate about bringing the rise forward.
- HM Revenue & Customs estimates more than 10 million people aged 65 and over will pay income tax in 2026–27 as frozen tax thresholds and rising pensions push many retirees into the tax net.
- Independent Age and Public First analysis finds about 2.5 million pensioners are not claiming means‑tested payments such as Pension Credit, housing benefit or council tax relief, costing some individuals as much as £13,000 a year and leaving avoidable health and care costs for the public sector.
- The Chancellor has confirmed HMRC will recover Winter Fuel Payments from households with total income above £35,000 through tax codes, producing typical monthly deductions of roughly £17 rising to about £33 in 2027/28.
- Analysts warn the triple lock’s generous annual increases are the main driver of rising pension costs and fiscal drag, and advisers say individuals can mitigate risk by making voluntary National Insurance payments, increasing private pension saving, or consolidating pension pots.