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yesterday

Government Revives Pensions Commission for State Pension Age Review as Costs Surge

The new statutory review follows OBR forecasts that pension spending could climb to 8 percent of GDP by 2073.

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Overview

  • Chancellor Rachel Reeves said a review is essential to keep the state pension system sustainable and affordable.
  • Legally mandated age rises from 66 to 67 by 2028 and to 68 by 2046 are now under fresh scrutiny amid mounting fiscal pressure.
  • The OBR warned that demographic change and the triple lock could push annual pension costs toward £200 billion and nearly 8 percent of GDP over coming decades.
  • Independent analysts project that the state pension age may need to reach around 70, while some actuaries caution extreme scenarios could demand even higher thresholds.
  • DWP data show £65 billion withdrawn early since 2015 and studies flag 15.3 million people at risk of falling below minimum retirement incomes, with stark regional and cohort disparities.