The State Pension age is being reviewed early in the UK and will be determined by two key factors.

The Department for Work and Pensions (DWP) normally conducts a review of the State Pension age every six years, but it launched an early review last year following concerns that adults aren’t saving enough into private pensions for their retirement. According to DWP analysis, around 15 million people are undersaving for retirement, particularly the self-employed, low-paid, and some ethnic minorities. The DWP warned that pensioners will be £800 poorer by 2050, and the findings prompted an early review of the UK retirement age, despite the previous one having only been completed in 2023.

The Government Actuary has now been commissioned to prepare a report on the State Pension age as part of the third review and will consider two key factors in its decision.

The first of these factors will consider whether the rules around pensionable age are appropriate, based on life expectancy data, while the second will assess whether a person who reaches pensionable age within a specified period can be expected to spend a specified proportion of their adult life in retirement.

The Government Actuary said: “The third State Pension age review will consider whether the rules around pensionable age are appropriate. This will be based on life expectancy data and evidence from 2 reports – an independent report led by Dr Suzy Morrissey, and a report from the Government Actuary to examine the latest life expectancy projections data.

“The Government Actuary’s report must provide advice on whether the rules about pensionable age mean that, on average, a person who reaches pensionable age within a specified period can be expected to spend a specified proportion of his or her adult life in retirement.

“The report should also include a commentary on trends in life expectancy data, an assessment of current legislative timings for the rise to 68 and sensitivity analysis.

“The statutory review of the State Pension age will sit alongside the new Pensions Commission, which has been revived to look at the overall issue of retirement savings.”

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The DWP has already confirmed that the State Pension age will increase from 2026, rising from the current age of 66 to 67. The age increase will be implemented in phases and will affect when people born between April 6, 1960, and March 5, 1961, can claim their State Pension.

A further increase is planned between 2044 and 2046 which will see the age rise to 68, meaning younger generations face an even longer wait to claim their State Pension.