A state pension age rise to 70 ‘wouldn’t be surprising’, it has been warned. Kevin Mountford, co-founder of Raisin UK, said it “wouldn’t be surprising” to see proposals emerge for increasing the pension age to 69 or 70 years.
Under existing plans, the state pension will rise to 67 between 2026 and 2028 thanks to a Department for Work and Pensions ( DWP ) shake up. Mr Mountford warned that raising the state pension age would particularly impact vulnerable pensioners.
He said: “For many, especially those in lower-income or physically demanding jobs, delaying the state pension could result in significant financial and health challenges.” Mr Mountford said: “While the planned rise to 67 years by 2028 is already in motion, there’s now speculation about the Labour Government potentially accelerating a further increase to age 68 – or even higher.”
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He added: “The short-term fiscal benefits must not come at the cost of long-term societal inequality.” The maximum ‘new’ State Pension is £221.20 a week, though you may get more or less than this depending on your individual circumstances. This comes under the flat-rate ‘new’ State Pension system, which began on 6 April 2016.
The triple lock ensures that the State Pension doesn’t lose value over time, and in practical terms, guarantees that every year it will rise by the highest of average earnings, inflation (measured by the Consumer Prices Index) or 2.5 per cent.
You receive the State Pension when you reach the Government’s official retirement age. What that is depends on when you were born. The current State Pension age is 66 for both men and women.
To cut costs, the official retirement age is gradually being raised. It has increased to 66 for men and women since April 2020, then it will rise to 67 by 2028, with a further rise to 68 due between 2044 and 2046.