Experts warn that the state pension age may rise to 70 due to increasing costs, with changes potentially happening sooner than expected.
London: Experts are raising alarms about the state pension age. Soon, you might have to wait until your 70s to get your pension. Starting in April, the pension payments will increase by 4.1%. This rise is part of the triple lock system, but it’s raising concerns about future affordability.
Aaron Peak, a finance expert, says an increase in the state pension age is likely. Currently, the age is set to rise from 66 to 67 between 2026 and 2028. After that, it will go from 67 to 68 between 2044 and 2046. Some reports suggest the government might speed this up.
Peak warns that if pension costs keep climbing, we could see the age pushed to 70 by the 2050s or 2060s. He notes that this change will be politically challenging, especially for those in tough jobs. The triple lock has helped retirees, but it’s becoming harder to maintain.
Another expert, Amy Knight, agrees. She believes the state pension age could rise to 70 or older in the next two decades. Knight also mentions that the government might implement these changes faster due to rising costs.
However, many people might oppose these changes. Knight points out that while it makes sense to raise the retirement age as life expectancy increases, past increases have caused concern among workers. They often feel unprepared to adjust their financial plans.
The current full state pension is £221.20 a week, set to rise to £230.25 in April. Steven Cameron, another pensions expert, thinks the triple lock may need to change soon. He suggests a new model where pensioners get an inflation increase and possibly more if wages rise faster than inflation.
