IFS Warns on Triple Lock and Pension Age Rises

The UK State Pension age will rise from 66 to 67 between 2026 and 2028, with a further increase to 68 planned for the 2040s, directly impacting those born after April 1960. The Institute for Fiscal Studies (IFS) has recommended replacing the triple lock system, warning that its retention could cost £5–40 billion extra annually by 2050 and may necessitate raising the pension age to 74 by 2069 or risk pushing national debt to 270% of GDP over the next 50 years. The IFS suggests reforms including a new 'four-point plan' for pension increases and mandatory higher employer contributions to private pensions to bolster future retirees' financial security. Critics argue that substantial increases to the pension age could heighten poverty risk for mid-60s individuals, especially renters and those without private pensions. Campaigners stress that the triple lock remains vital in preventing pensioner poverty and oppose means-testing the State Pension. The government faces difficult choices as it balances pension adequacy with long-term fiscal sustainability.