The State Pension age is scheduled to start increasing from 66 to 67 next year, with the rise expected to be fully rolled out for all men and women throughout the UK by 2028. This planned alteration to the official retirement age has been on the cards since 2014, with a subsequent increase from 67 to 68 arranged to occur between 2044 and 2046.

The Pensions Act 2014 brought forward the State Pension age increase from 66 to 67 by eight years. The UK Government also adjusted the timing of the State Pension age rise, meaning that instead of reaching State Pension age on a specific date, individuals born between 6 March 1961, and 5 April 1977, will be eligible to claim the State Pension once they turn 67.

Experts warn that people must prepare for these changes to avoid being financially blindsided. Everyone affected by modifications to their State Pension age will receive letters from the Department for Work and Pensions (DWP).

Chancellor Rachel Reeves recently stated that a review which could see the age being raised even higher is necessary to ensure the system remains “sustainable and affordable”. The Government review is scheduled to report in March 2029 and Ms Reeves said it was “right” to examine the age at which people can receive the state pension as life expectancy rises.

The state pension age currently stands at 66, rising to 67 by 2028, with the Government legally required to periodically assess this threshold. The Chancellor told journalists: “We have just commissioned a review of pensions adequacy, so whether people are saving enough for retirement, and also the state pension age. As life expectancy increases it is right to look at the state pension age to ensure that the state pension is sustainable and affordable for generations to come.”

“That’s why we have asked a very experienced set of experts to look at all the evidence.”

Pensions Minister Torsten Bell MP said the role of the revived Pensions Commission will be to conduct a review of our pensions system as a whole and the retirement outcomes it delivers, with “a clear objective: building a strong, fair and sustainable pension system fit for the middle of the twenty first century”.

Some 13 million pensioners are set to see their state pension increase faster than inflation next April, due to the triple lock used to calculate state pension increases.

Under the triple lock guarantee, the state pension increases every April in line with whichever is the highest of total earnings growth in the year from May to July of the previous year, Consumer Prices Index (CPI) inflation in September of the previous year, or 2.5%.

Next year’s 4.8% increase – in line with wages – means that people receiving the full new state pension could get £241.30 per week – or around £12,548 per year.

Those on the full basic state pension could see their weekly payment rise to around £184.90. Many pensioners do not receive the full state pension.

The pension age review was announced by the Department for Work and Pensions and will include an independent report, led by Dr Suzy Morrissey, examining specified factors relevant to the Review of State Pension Age alongside the Government Actuary’s Department’s analysis of the latest life expectancy projections data.

Rachel Vahey, head of public policy at AJ Bell, previously said: “An increase to state pension age from 66 to 67 is already slated to happen between 2026 and 2028. But it’s less clear what will happen after that.

“There is also an increase to age 68 pencilled in for 2046, but a faster increase is definitely on the cards. The first two reviews of the state pension age advocated bringing this forward, but successive governments have treated the issue like a hot potato.

“This latest state pension age review, however, may eventually force the government’s hand.

“State pension benefits are one of the single biggest expenses for the Treasury and account for more than 80 per cent of the £175 billion pensioner welfare bill.

“Without policy intervention, state pension costs are set to spiral to nearly eight per cent of GDP over the next 50 years based on the current trajectory, up from 5.2 per cent today.

“The second state pension age review in 2023 recommended that the increase to 68 should be introduced between 2041 and 2043 to help reduce costs, although the government under Rishi Sunak opted not to commit to that timetable.

“However, the new Labour government may feel it needs to consider the rise to age 68 more closely, particularly if it wants to demonstrate steps toward long-term fiscal prudence.

“What will the third state pension age review look at? The new state pension age review will look at key factors such as linking state pension age to life expectancy, its fairness between generations, as well as its role in ensuring the state pension’s long-term sustainability.

“An ageing population places an increasing burden on taxpayers, with state pension costs rising and fewer working age taxpayers to cover the cost.

“Future governments will hope that an improved economy and growing tax receipts will help alleviate some of the pressure. But that can’t be guaranteed and there needs to be a credible plan for maintaining affordability.

“One option is to raise the state pension age higher and faster than currently planned. Although the elephant in the room is that state pension age is just one lever government has to help manage the cost of the state pension – the other is reforming the triple lock.

“However, if the state pension age review calls for the state pension age timetable to be accelerated, that could provide some cover for future governments to look at reforming the triple lock in order to avert ever more dramatic rises in state pension age.”

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, commented: “There will be many factors that need to be assessed during this review of the state pension age.

“One of the most important will be healthy life expectancy which according to the latest data hovers in the early 60s.

“This means the reality is that many people will face real difficulties in continuing to work until their mid-to-late 60s and could face a sizeable income gap while they wait to receive their state pension.”

The largest rail workers’ union has warned that a rise in the state pension age could spark protests and direct action.