A key announcement for the state pension could be set out at the Spring Budget, an expert has said.
The question of the state pension age is a growing concern as the age is soon to increase from the current 66 to 67 between 2026 and 2028.
A review was published during the previous Government in 2023 looking at the issue, and if the later move from 67 to 68, currently timetable for between 2044 and 2046, should be brought forward.
Ministers said at the time there would be a “further review” into the issue during this current Parliament.
Fiona Peake, personal finance expert at brokerage Ocean Finance, said: “With part two of the pensions review approaching, we’re likely to see fresh discussion around the state pension age and whether changes are needed to keep the system sustainable.
“The Government has previously stated there would be a review within two years of this Parliament about the planned rise in the state pension age to 68, so we could be looking at an announcement around the Spring Budget.”
Chancellor Rachel Reeves will set out her Spring Budget on Wednesday, March 26, 2025. A DWP spokesperson said: “There is a statutory requirement to review the state pension age set out in the Pension Act 2014 and in line with legislation, the next review must be completed by the end of March 2029.”
Looking at the factors that could affect the state pension age, Ms Peake said: “Whether or not the state pension age increase from 67 to 68 is brought forward will depend on a balance of affordability and fairness.
“Life expectancy trends, workforce participation, and public finances will all come into play. If we’re living longer and working later, it might seem logical to shift the state pension age forward, but such changes can feel deeply unfair to those in physically demanding jobs or with health issues, who may struggle to work into their late 60s.”
The retirement expert also warned of the risk that many people are not aware their state pension age is increasing from 66 to 67.
She warned that those on low income or who have insecure work are less likely to be aware of the change, or those who do not regularly read up on pension policy news.
Ms Peake urged: “Employers, the Government, and organisations like the Pension Advisory Service all need to make sure these changes are well-communicated.
“Otherwise, people could face a nasty shock when they realise they’ll need to wait longer than expected to access their state pension.”
The Spring Budget is just a week and a half before state pension payments will increase 4.1 percent, in line with the triple lock.
This will raise the full new state pension from £221.20 a week to £230.30 a week, while the full basic state pension will go up from £169.50 a week to £176.45 a week.
