State Pension Age Review 2025: What the Rise to 67 and 68 Means for Workers

Why a third review matters now

Since the 1995 Pensions Act forced men and women onto the same retirement track, the UK has nudged the State Pension age higher three times. What began as 60 for women and 65 for men in the post‑war era is now 66 for everyone, with legislation already earmarking 67 by the late 2020s and 68 by the mid‑2040s. The latest review, launched in July 2025, is the government’s attempt to match policy with longer lives, higher wages and the fiscal pressure of an ageing population.

Dr Suzy Morrissey, a veteran civil servant, will head a panel that will sift through two key reports: an independent analysis of the factors that should shape pension age decisions, and a Government Actuary Department forecast of future life expectancy. The panel’s mandate is clear – decide if the current timetable still fits the reality of people living longer, healthier lives.

• Current timetable: 66 for both sexes now; rise to 67 between 2026‑2028; rise to 68 between 2044‑2046.
• Key legislation driving change: Pensions Act 1995 (equalisation), 2007 (67‑68 roadmap), 2011 (accelerated 65‑66 shift), 2014 (earlier 67 jump).
• Data sources: actuarial life‑expectancy models, health‑care trends, labour‑market participation rates.

What the changes could mean for workers and the economy

Higher retirement ages can boost the tax base and ease pressure on public finances, but they also raise questions about job security for older employees. For low‑paid workers, an extra year or two in the workforce could mean delayed access to a modest pension, potentially widening inequality.

At the same time, the pension itself has not been frozen. The triple‑lock mechanism – which guarantees a rise of at least the higher of wage growth, inflation or 2.5% – lifted the full new State Pension to £230.25 a week in April 2025. A further 4.7% increase to £241.05 is already slated for April 2026.

Industry groups argue that a higher pension amount partially offsets the cost of working longer, while pension charities warn that many retirees will still face shortfalls if they cannot secure additional private savings. The review’s findings will likely influence whether future reforms couple age hikes with stronger incentives for private retirement savings.

In practical terms, workers should start revisiting their retirement plans now. Financial advisers suggest testing different retirement ages in budgeting tools, considering the potential for higher pension payouts versus the loss of earnings during extra working years.

Ultimately, the third review will set the tone for how the UK balances longevity, fiscal sustainability and fairness. Its recommendations could reshape the retirement landscape for generations to come.