Rise in State Pension age could occur in 2040s

According to articles in leading newspapers, Mel Stride, Secretary of State for Work and Pensions, has suggested that the rise in the state pension age to 68 could occur in “2040 or thereabouts”, stating that Ministers will have to “grasp the nettle” on bringing forward the rise in the first couple of years of the next parliament. 

Addressing journalists at a lunch in Westminster, Mr Stride said: “I don't think it's in our national psyche to start rioting and burning things over the state pension... The range of dates for the moving up of the state pension age from 67 to 68 is well into the 2030s: you're debating 2030s, 40s or thereabouts. There's no reason why we need to take the decision now; you can wait until the first couple of years of the next parliament, take that decision and still give people ten years' notice.”

Asked about the state pension triple lock, Mr Stride said there were “not any plans currently” to abandon the policy in the next Conservative election manifesto. He stated: “I think the triple lock is a decision for the Prime Minister and others, and there are no plans to change the triple lock.”

Planning ahead for pension age rises

It’s never too early to start planning for retirement, and working until 68 is unlikely to be everyone’s ideal plan. It is helpful to engage a Financial Adviser early on to be able to work out what a realistic retirement age could be, and how much increases to State Pension age could impact your retirement dreams.

At The Private Office we use cash flow modelling to map out our clients’ financial futures and explore different scenarios, including how different retirement ages can impact the lifestyle able to be achieved in later life.  
Get in touch to find out more about how we help our clients to plan for their retirement, and how we could help you.

The information in the article is correct as at 14/06/2023.

Please note: The Financial Conduct Authority (FCA) does not regulate cash flow planning.