Blow to Brit workers as future OAPs face working for longer for a SMALLER state pension
Published: Invalid Date,
MILLIONS could be forced to work for longer after minister Liz Kendall announced another review of the state pension age.
It is already poised to rise to 67 by 2028 — but experts say it will have to hit 74 within decades if the triple-lock is kept.
Welfare Secretary Liz Kendall appeared to pave the way for the state pension age to rise ahead of schedule by launching a review to make sure the system is sustainable.
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She also warned the cost-of-living crisis is stopping people from saving in private pension pots.
Ms Kendall said: 'Unless we act, tomorrow's pensioners will be poorer than today's.'
Her review, due in 2027, comes after the Office for Budget Responsibility said the triple-lock — which guarantees a state pension rise of at least 2.5 per cent each year — is costing three times more than originally forecast.
Ms Kendall said the triple-lock is 'out of scope' for her report.
The state pension age will soon rise to 67.
The next increase to 68 is due in the mid-2040s, but the Institute of Fiscal Studies says it will have to be increased to 69 by 2049 and then reach 74 by 2069 if the triple lock is kept.
Without rises, state pensions could exceed six per cent of GDP.
Tory leader Kemi Badenoch blamed Labour for less growth and more unemployment, meaning 'less money to pay' for pensions.
An estimated 15 million adults are under-saving for retirement.
How to track down lost pensions worth £1,000s
How will a higher state pension age affect my retirement?
By James Flanders, Chief Consumer Reporter:
Raising the state pension age means people will have to wait longer to get their government-funded pension, which can be tough for those who rely on it as their main source of income.
It's especially challenging for people in physically demanding jobs or those with little in the way of savings, as they'll need to figure out how to cover the gap between stopping work and qualifying for the state pension.
But the good news is that private pensions give you more choice.
Right now, you can access private pensions from age 55, although this will increase to 57 in April 2028.
If you've been saving into a workplace pension or a personal pension, you could retire earlier than the state pension age, depending on how much you've saved.
You can take the money as a lump sum, set up regular payments, or even leave it invested to grow.
For those with enough savings, this flexibility means you can plan retirement around what works for you.
But if your private pension isn't enough, you might find yourself working longer and waiting for the state pension to kick in.
It's a reminder of why starting to save early and keeping an eye on your pension pot is so important for creating options later in life.
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