UK Government Launches Review of State Pension Age Amid Rising Costs

The UK government has launched an early statutory review of the state pension age, which is currently set to rise from 66 to 67 between 2026 and 2028 and then to 68 between 2044 and 2046, amid concerns over the rising costs of the triple lock pension guarantee and an ageing population. The review, led by the Department for Work and Pensions (DWP), could potentially recommend raising the pension age beyond 68, with comparisons drawn to Denmark's plan to increase it to 70 by 2040 and expert suggestions that it might need to reach as high as 74 by 2068–69 to sustain the system. This move is driven by financial pressures, including a widening gender pension gap, low pension savings among self-employed and minority communities, and warnings from the Office for Budget Responsibility about unsustainable public finances and escalating pension costs. The government has revived the Pensions Commission to assess saving adequacy and pension sustainability, emphasizing the need for any changes to be fair, adequate, and sustainable. Charities and experts caution that changes must carefully consider the impact on vulnerable groups, as the state pension remains the primary income source for many retirees, with millions not saving privately for retirement. Overall, the review reflects the challenge of balancing pension affordability with providing security and dignity for future retirees in the face of demographic and economic pressures.