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UK Review of State Pension Age Prompts Call for Five-Year Guaranteed Payout

Ministers are reassessing the timetable for future increases, with modelling indicating that bringing 68 forward would postpone payments for around three million people.

Overview

  • The statutory rise from 66 to 67 begins next year and will be completed by 2028, as confirmed in existing legislation.
  • A further increase to 68 is scheduled for 2044 to 2046, but the Department for Work and Pensions has launched a third review to consider changes to the timetable.
  • Sir Steve Webb of LCP proposes keeping rises on track but guaranteeing at least five years of state pension payments, with any shortfall paid to heirs if a recipient dies sooner.
  • Phoenix Insights estimates that shifting the move to 68 into the early 2040s would delay payments for about three million people, with many unable to work longer.
  • Rising costs frame the debate, with the OBR projecting state pension spending near 7.7% of GDP by the early 2070s and the Labour Government pledging to maintain the Triple Lock.