There's already a plan in place for a phased increase in state pension age from 66 to 67 by 2028, with a view to eventually increase it to 68 – but this could be moved forward.
Here, Which? explains why the state pension age is important for planning your retirement, and who would be most impacted by any changes to it.
Why is your state pension age important?
The state pension age is the age you must reach before you are allowed to access your state pension, which might make up a large part of your income when you retire.
The state pension age is currently 66 for both men and women.
Two more increases are already set out in legislation. It will gradually rise to 67 for those born on or after April 1960 between 2026 and 2028, with another gradual rise to 68 between 2044 and 2046 for those born on or after 1977.
However, the government regularly reviews the state pension age to see if any changes need to be made, and the latest review is due to be published this spring.
Find out more:State pension age rise could be moved forward
The first review of the state pension age was undertaken in 2017 and concluded that the next review should consider whether the increase to age 68 should be brought forward to 2037-38.
There are reports in the media that the review will recommend the increase to 68 be moved forward to the mid 2030s, and that this change could be announced as early as the Spring Budget, due to take place on 15 March.
In response, the Department of Work and Pensions (DWP) told Which?: ‘The government is required by law to regularly review the state pension age, the second of which will be published later this year.’
Find out moreHow much could a change to state pension age cost you?
Bringing the state pension age rise forward means some workers will miss out on a full year of state pension payments.
Interactive Investor calculations predict this could be worth £13,594 for workers aged 57 and £16,902 for workers aged 46 if the state pension age rise to 68 were moved forward to 2034.
The calculations factor in the new full state pension of £203.85 per week (£10,600 over the year), and assumes an inflation-linked uprating of 5.2% (forecasted by the Bank of England) and 2% inflation a year thereafter (the Bank of England’s target inflation rate).
Source: Interactive Investor
Find out more:Knock-on effect on workplace pensions
A change to the state pension age could have a knock-on effect on workplace pensions, as you would have to withdraw money from a private pension earlier to fund your lifestyle if you wished to retire before 68.
According to Interactive Investor, someone with a workplace pension of £100,000 who retires at 67 would see their money running out two years earlier, when they reach 79, instead of 81.
This is because they will need to withdraw an extra £10,600 from their pension pot to tide them over until they get the state pension at 68 (assuming 4% investment growth and 2% inflation).
It’s worth noting the government has already confirmed a plan to increase the minimum age you can access your workplace pension, rising from age 55 to 57 from 2028.
Find out more:Who would the changes impact the most?
If the state pension age was increased early, it would mean workers who are currently 57 or younger won’t get their state pension until they reach 68, rather than 67 as planned.
Age UK has warned raising the state pension age earlier than planned could have ‘devastating consequences’ for millions of people in their 50s and 60s who are already struggling financially.
The charity said the people who will lose out the most are those unable to work due to ill health and caring responsibilities, as well as anyone who becomes unemployed in mid-life and finds it hard to get another job due to a lack of training opportunities and ‘rampant ageism’ in the labour market.
Its report, ‘Waiting for an age: the real impact of raising the state pension age’, found 3.5m people aged 50-64 are currently classified as economically inactive. Of these, 1.3m are sick while 0.5m have caring responsibilities.
Find out more:How to prepare for state pension age changes
Although there is no way of getting round the change if it's brought in, there are steps you can take to prepare.
Work out how much you’ll need to retire
To help figure out how much you need in retirement, we've spoken to thousands of retired Which? members to see where their money is being spent.
Households with two people spent an average of just under £2,340 a month, or around £28,000 a year, to be 'comfortable' when we carried out research in 2022.
This covers all the basic areas of expenditure (which had a combined cost of £19,000 per year on average) and some luxuries, such as European holidays, hobbies and eating out.
Find out more:Check your state pension forecast
The state pension forecast will provide you with an estimate how much state pension you could get when you reach state pension age.
It will also show the number of qualifying years of contributions on your National Insurance record, and any gaps.
Find out moreCheck your workplace pension
Pension providers will send you a statement each year to tell you how much is your pension pot.
You can also ask for an estimate of how much you’ll get and when to start taking your pension pot. If you are able to, you should consider upping your contributions from the minimum 5% while you're still working.
Some employers will match your contributions, so if you can increase them, even just by 1%, it could make a huge difference to your overall pot – especially if you start early.
Find out moreGet free pensions advice
If you're over 50, you can book a free guidance session with a specialist.
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