State pension reform has returned to the centre of political discussion as the nation’s growing financial burdens have prompted experts to forecast that a rise in the retirement age to 70 could arrive earlier than anticipated. Further demands have been made for Chancellor Rachel Reeves to reassess the triple lock policy.

The state pension age currently stands at 66, scheduled to climb to 67 by 2028, with additional rises planned for subsequent decades. Financial advisers and think tanks are advocating for swifter measures, pointing to demographic changes and escalating costs that jeopardise long-term viability.

Speaking amongst other experts to Newspage, Samuel Mather-Holgate, an independent financial adviser at Swindon-based Mather and Murray Financial, said: “The state pension system is ripe for squeezing, so an increase to the state pension age is coming down the tracks, probably to 70. Changing the triple lock would save a fortune, but it would be politically difficult as the older generation votes.”

The pension framework already makes up nearly 5% of the UK’s GDP, a proportion anticipated to surge to almost 8% within the next 50 years.

The Office for Budget Responsibility (OBR) cautioned that the expense will surpass earlier projections by £10billion annually owing to unpredictable inflation and sluggish wage growth since 2012. The triple lock guarantees pensions rise annually by the highest of inflation, earnings growth, or 2.5%, reports the Express.

Nevertheless, it has been identified as a significant contributor to escalating expenditure, adding an estimated £23billion more to annual pension spending by 2030 compared to inflation-only increases.

Bodies such as the Institute for Fiscal Studies advocate for a more measured approach, suggesting that the state pension age should rise in line with life expectancy while ensuring workers receive sufficient notice before changes take effect. They propose phasing out the triple lock once a sustainable replacement rate is achieved, in favour of a smoother, more predictable pension uprating system.

Economists have backed the notion that the triple lock policy should be replaced with a new measure, contending that the policy’s current trajectory is unsustainable.

Economist Ben Ramanauskas wrote on X: “Triple Lock needs to be replaced with a single lock indexing the State Pension to average earnings growth. It will be far more sustainable and give pensioners more of a stake in productivity gains.”

The Government has stated it was “committed” to maintaining the current policy until the end of parliament.

Responding to the report, a Treasury spokesperson said: “We are committed to supporting pensioners and giving them the dignity and security they deserve in retirement.”

A Government review of the state pension age will be published in 2027.

Read more @cambridge