A sweeping change to the eligibility for the state pension risks affecting some people more than others. From next year, the access age for the benefit is increasing from 66 to 67. This is happening in stages between April 2026 and April 2028.
As the costs of providing the state pension move ever upwards, some policy makers have suggested bringing forward the next timetabled increase, from 67 to 68. However, Mike Ambery, retirement savings director at Standard Life, part of Phoenix Group, warned that raising the state pension age can lead to unfairness.
He said: « Although the current plan is to increase it to 67 between 2026 and 2028, and then 68 between 2044 and 2046, this timeline is under review and could be brought forward. However, any such move must be approached with caution as raising the age disproportionately affects lower-income groups who are more likely to stop working earlier due to health or caring responsibilities – and who rely most heavily on the state pension. »
The full new state pension currently pays £230.25 a week, or £11,973 a year. Payment rates are set to increase 4.7 percent next April.
Payments go up in line with the triple lock. This ensures rates increase in line with whichever is highest out of the rise in average earnings, inflation, or 2.5 per cent.
Mr Ambery said that the sustainability of the state pension is « one of the most pressing challenges » facing the Government. He said: « While the triple lock has helped protect pensioners’ incomes, its long-term affordability is under increasing scrutiny, especially as the UK’s ageing population places growing pressure on public finances.
« One option could be to modify the triple lock, for example by removing the average earnings component so that increases are linked only to inflation. Another could be to introduce means testing, though both would be politically sensitive and risk undermining public confidence in the pensions system. »
The triple lock has provided some sizeable increases in recent years, including an 8.5 per cent pay boost in 2024 and a record 10.1 per cent increase in 2023.
