State pension age could rise to 71 with increase 'sooner than planned'

Research conducted by the International Longevity Centre floated boosting the state pension age to 70 or 71 by 2050 due to "widening demographic imbalances" in society.

State pension ages could hit 71 amid the ongoing Cost of Living crisis. Research conducted by the International Longevity Centre floated boosting the state pension age to 70 or 71 by 2050 due to "widening demographic imbalances" in society.

However, the Institute of Fiscal Studies (IFS) report' "Pensions: five key Decisions for the next Government" states: "While increasing the state pension age is a coherent response to public finance pressures arising from increased longevity at older ages, there are also concerns around those who struggle to work up to (a rising) state pension age.

"Previous IFS research shows that the increase in the state pension age from 65 to 66 increased the income poverty rate of 65-year-olds by 15 percentage points. Concerns about low living standards below state pension age have been raised by various groups."

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In its pension report, the IFS explained: "If [the Government] chooses to accept the recommendation of a previous independent review to bring the increase forward to the late 2030s, then those directly affected should be notified in the next few years (in line with the current government’s sensible commitment to provide at least 10 years’ notice of any change).

"Increasing the state pension age is a coherent response to increases in longevity at older ages, and one that other countries are also adopting. But it affects poorer people more, as well as those who find it more difficult to remain in paid work at older ages."

Current legislation plans for the access age to rise from 66 to 67 between 2026 and 2028, and then to 68 between 2044 and 2046. However, there have been suggestions that the Government could speed up the increase to 68 in an effort to keep the policy affordable.

Labour has previously committed to retaining the triple lock, which guarantees payments go up each year in line with the highest of 2.5 percent, inflation or the rise in average earnings. The year before this increase, pensioners received a record 10.1 percent hike in their payments, the largest increase on record.