State Pension Age Review

The Pensions Act 2014 requires the government to conduct a periodic review of the State Pension age (SPA). The first review concluded in 2017, and the second review concluded in 2023. The government has announced the launch of the third review of State Pension age in July 2025, which is set to conclude in 2029. This review will consider whether the rules around pensionable age are appropriate, based on the latest life expectancy data and other evidence.  

As a reminder, the current timetable for the SPA, is shown below:

• SPA will increase from 66 to 67 – between April 2026 and April 2028

• SPA will increase from 67 to 68 – between April 2044 and April 2046

The announcement comes following warnings from experts that people looking to retire in 2050 are on course to receive £800 per year less than current pensioners. This is due to the fact that 45% of working-age adults are not contributing into their pensions, with concerns that the cost of living crisis is preventing people from investing in their retirement.

The government have confirmed that there will be no further increases to National Insurance contributions under this parliament, both employee and employer, to help fund the issue. They have also confirmed that the pensions triple lock, the guarantee that the state pension rises in line with average earnings, inflation or 2.5% – whichever is highest – would not be reconsidered as part of this review.

Any recommendations from the review will take time to implement and the government remains committed to the principle of providing 10 years’ notice of changes to the SPA.