An expert has suggested that a crucial announcement regarding the state pension could be made at the Spring Budget. The issue of the state pension age, which is set to rise from 66 to 67 between 2026 and 2028, is becoming increasingly concerning.
A review was conducted by the previous Government in 2023 to examine this matter, including whether the subsequent increase from 67 to 68, currently scheduled for between 2044 and 2046, should be brought forward. Ministers indicated at the time that there would be a “further review” during this current Parliament.
Fiona Peake, a personal finance expert at brokerage firm Ocean Finance, stated: “With part two of the pensions review approaching, we’re likely to see fresh discussion around the state pension age and whether changes are needed to keep the system sustainable. The Government has previously stated there would be a review within two years of this Parliament about the planned rise in the state pension age to 68, so we could be looking at an announcement around the Spring Budget.”
Chancellor Rachel Reeves will present her Spring Budget on Wednesday, March 26, 2025. The DWP has been approached for comment. Regarding the factors that could influence the state pension age, Ms Peake said: “Whether or not the state pension age increase from 67 to 68 is brought forward will depend on a balance of affordability and fairness.”
The retirement expert highlighted several factors influencing pension policies, stating: “Life expectancy trends, workforce participation, and public finances will all come into play. If we’re living longer and working later, it might seem logical to shift the state pension age forward, but such changes can feel deeply unfair to those in physically demanding jobs or with health issues, who may struggle to work into their late 60s.”
She also cautioned that many people may not be aware of the state pension age increase from 66 to 67, saying this may particularly be an issue among low-income workers and those who don’t follow pension policy news closely. Ms Peake stressed the importance of communication: “Employers, the Government, and organisations like the Pension Advisory Service all need to make sure these changes are well-communicated.
“Otherwise, people could face a nasty shock when they realise they’ll need to wait longer than expected to access their state pension.” The Spring Budget will come just a week and a half before state pension payments are set to rise by 4.1 percent, in line with the triple lock.
This adjustment will increase the full new state pension from £221.20 a week to £230.30 a week, and the full basic state pension from £169.50 a week to £176.45 a week.