Thirty-six percent of individuals aged 60 and over anticipate needing to work longer due to potential increases in the state pension age, according to recent findings. The current state pension age is in the process of rising from 66 to 67, a change that began in April 2026 and is expected to conclude in 2028.
Speculation has emerged regarding a possible accelerated increase in the state pension age to 68. The Office for Budget Responsibility (OBR) indicated in a recent report that the state pension age could reach 68 between 2037 and 2039, a timeframe faster than the currently legislated increase between 2044 and 2046. Such a change would affect individuals born between 1971 and 1977, requiring them to work until age 68.
However, the Treasury has stated that this speculation is inaccurate, emphasizing that the law still stipulates an increase to the State Pension age to 68 in 2044. The Treasury also announced in July 2025 the commencement of the third statutory review of the state pension age, a process mandated by legislation.
Pensions Minister Torsten Bell has also publicly refuted reports suggesting an earlier rise in the state pension age to 68. Nevertheless, the Labour party's stance on the state pension age is currently under review.
The Pensions Act 2014 mandates that the government review the state pension age every six years. The ongoing review, which commenced in 2025 and is scheduled to conclude in 2028, is examining the appropriateness of current pensionable age rules, taking into account the latest life expectancy data and other relevant factors. Despite official reassurances, the possibility remains that the state pension age could be raised sooner than currently legislated.
Research conducted by the Standard Life Centre for the Future of Retirement indicates that a significant portion of individuals aged 60 or over are concerned about working beyond their planned retirement age. Over a third of this age group, who are not yet retired, expressed belief that they would need to work longer as the state pension age increases.
Financial pressures appear to be a primary driver for extended working lives. The research found that 38 percent of individuals aged 60 to 65 surveyed reported working longer to cover daily expenses. Additionally, 37 percent of those in the same age bracket indicated they are delaying their retirement until they are eligible for the state pension.
This situation highlights broader challenges in retirement adequacy. More than 15 million people in Britain are estimated to not have saved enough for their retirement. Catherine Foot, director of the Standard Life Centre for the Future of Retirement, commented that while working later can offer benefits when it is a personal choice, for many, it is a financial necessity. She added that millions are unable to retire as planned, underscoring the need for longer working lives to bridge the retirement savings gap. The current full state pension is valued at £12,550 annually and forms a critical component of many retirement financial plans.