Treasury officials have reportedly told the Office for Budget Responsibility the “current policy” is for the state pension age to rise to 68 as early as 2037
Five million more people could be forced to wait an extra year to receive the state pension, it is claimed.
The retirement age is, at it stands, due to gradually increase to 68 between April 2044 and April 2046. However, the Tory government committed to raising it to 68 by 2037, up to seven years early.
Labour began a review of state pension age last year and ministers have insisted that no final decision has been made. But, a report in The Times claims Treasury officials have told the Office for Budget Responsibility, the government’s fiscal forecaster, that the “current policy” is for the state pension age to indeed rise to 68 between 2037 and 39.
“The Treasury has confirmed to us that this is the government’s current policy position, rather than the legislated increase set in the Pensions Act 2007,” the OBR reportedly said.
However, the Treasury hit back., with a spokesperson insisting: “This is untrue. The law remains to increase to the State Pension to 68 in 2044. In July 2025 we announced the launch of the third review of the state pension age, as required by legislation.”
Bringing forward a rise would mean that about five million people who are aged between 49 and 55 at present having to work or wait an extra year before being eligible for their state pension, costing them about £12,500. Making the change would save the government about £6billion a year from 2037, compared with the present timetable.
Catherine Foot, director of the Standard Life Centre for the Future of Retirement, said: “The state pension remains a critical element of retirement incomes in the UK for millions of people, and the reports that state pension age increases could be accelerated are a reflection of the difficult balancing act government faces in keeping the system affordable while people live longer, and ensuring it remains fair and adequate for those who rely on it.
“The challenging reality is that our research shows the pressures are already being felt most acutely by those least able to adapt to the current increase.
“Over a quarter of those directly affected by rises in state pension age say they are struggling to make ends meet day-to-day – compared to just one in seven of those above state pension age – and more than a third of people in their early 60s say they expect they will need to work for longer as a result.
“An official review of the state pension age is underway so we should not take these reports as the outcome but the discussion about how we balance fairness and affordability of the state pension is one we can expect to hear much more on in the coming months.”
Former pensions minister Ros Altmann warned raising the pension age was not the best way to cut costs.
“Better policy options include reforming the triple lock and increasing the number of years needed for a full State Pension,” said Baroness Altmann. “Increasing the State Pension Age will mean least well-off older people are penalised.”
Sir Steve Webb, another former pensions minister and a partner at the consultancy Lane Clark & Peacock, said: “Within government it is widely expected that the age increase will take place seven years earlier than the law currently says. That means around five million people will lose around £12,500 that they might otherwise have been entitled to. Ministers are going to have to be clear about this soon.”
