UK launches third state pension age review, eyes rise to 70
Oct, 10 2025
When Dr. Suzy Morrissey, a New Zealand demographer appointed by Liz Kendall, Secretary of State for Work and Pensions, launched the third State Pension Age Review 2025United Kingdom on 18 August 2025, the government signaled it could push the state pension age up to 70.
Why the review matters now
The current state pension age sits at 66 for both men and women, with legislation already slated to lift it to 67 between 2026 and 2028 and to 68 sometime between 2044 and 2046. Those dates come from the Pensions Act 2014, which also forces a review every six years. The last two reviews – in 2017 and 2023 – left the timetable untouched. Today, however, life‑expectancy at age 66 has edged higher than the forecasts used a decade ago, albeit with a dip during the COVID‑19 lockdowns.
For many near‑retirement, the idea of working until 70 feels like a shock to the system. Yet the Institute for Fiscal Studies warned in 2023 that men who turned 50 in 1975 could now expect around seven extra years of pension receipts compared with the increase in pension age over the same span. That gap fuels inter‑generational tension, especially as the public purse grapples with an ageing population.
What the review will examine
Morrissey’s brief, released by the Department for Work and Pensions, asks for evidence on three fronts:
- The merits of automatically linking the state pension age to life expectancy.
- How such a link would affect the long‑term sustainability of the pension fund.
- What international experience tells us about automatic adjustment mechanisms.
She also wants to know which regions, demographic groups, or socioeconomic classes would feel the biggest squeeze. The call for evidence runs until 24 October 2025, giving experts, unions, charities and ordinary citizens a tight window to weigh in.
International examples and lessons
Denmark recently lifted its retirement age to 70, arguing that higher life expectancy justifies a longer work life. Finland, Italy and the Netherlands have similar "automatic adjustment" clauses baked into their pension systems. In each case, policymakers say the moves were gradual – a few months’ shift each year – to avoid jolting retirees’ plans.
But the twist is that those countries also paired the age change with robust re‑skilling programmes and stronger part‑time work options for older workers. The United Kingdom, by contrast, has struggled to expand flexible‑working arrangements for the over‑55s.
"We can’t just tell people they’ll have to work longer without offering real pathways," noted James Glover, a senior analyst at the Royal Society of Public Health. "Otherwise you sow the seeds of public backlash."
Potential impact on retirees and the budget
If the pension age moves to 70, the average retiree could lose roughly 2.5 years of payments, according to a Treasury modelling paper leaked to the press. For a full new state pension of £230.25 per week, that translates to about £30,000 less per person.
On the fiscal side, the Office for Budget Responsibility estimates a £12 billion reduction in annual pension expenditures by 2040, assuming the age shift is fully implemented. Yet those savings come with a social cost: lower consumer spending among older households and increased reliance on private savings.
Experts also flag "chaos" for pension planners. Many workers time their mortgage repayments, children's university fees and other milestones around the expected retirement date. An automatic rise could flip those calculations upside down.
Next steps and political reactions
While the review is independent, the government must consider both Morrissey’s report and a companion analysis from the Government Actuary's Department. The GAD will crunch the latest life‑expectancy projections and advise whether the 68‑year target should be moved up sooner.
Labour’s shadow pensions team, led by Rachel Reeves, welcomed the evidence call but warned against a rushed decision. "We need a clear, transparent pathway that protects today’s retirees while recognising tomorrow’s realities," she said at a press briefing in London.
Conservative backbenchers, many of whom are approaching retirement themselves, have expressed concern that a sudden jump to 70 would be politically volatile. Former Chancellor Rishi Sunak hinted last week that any change must be "gradual and predictable".
The next parliamentary debate on the issue is slated for early 2026, giving ministers time to digest the evidence and craft any legislative amendments. If the recommendation to lift the age to 70 gains traction, a new amendment to the Pensions Act could appear in the 2026‑2027 legislative session.
Frequently Asked Questions
How would raising the state pension age to 70 affect current workers?
Workers nearing retirement could see their expected pension start date pushed back by up to four years, reducing total lifetime pension receipts by roughly £30,000 per person. It may also force many to reconsider savings, mortgage timing and health insurance arrangements.
What evidence is the government seeking in the review?
The Department for Work and Pensions wants data on life‑expectancy trends, international case studies of automatic adjustment mechanisms, and analyses of how a higher pension age would impact different regions, socioeconomic groups, and the public finances.
Which countries are being used as benchmarks?
Denmark, Finland, Italy and the Netherlands are the primary benchmarks. All have introduced some form of automatic link between retirement age and life expectancy, usually with phased adjustments and accompanying training programmes for older workers.
What role does the Government Actuary's Department play?
The GAD is tasked with providing the latest actuarial projections for UK life expectancy and assessing how those numbers intersect with the existing timetable for raising the pension age to 68. Its findings will feed directly into the minister’s decision‑making process.
When will a final decision on the pension age be made?
The government aims to publish its response after the October 24 evidence deadline, with a parliamentary debate expected in early 2026. Any legislative changes would likely appear in the 2026‑2027 session.