The government has launched another review of the State Pension age (SPA), which could see future increases automatically linked to life expectancy.
It comes as SPA, currently 66 for both men and women, is due to rise again, increasing in stages to 67 between 2026 and 2028. A further increase to 68 is also scheduled to take place – although not until 2044. The current review will consider whether this should be brought forward.
Links to life expectancy?
The Pension Act of 2014 required the government to review the SPA at regular intervals. This latest review will adopt a wider lens, considering the longer-term sustainability of the State Pension, alongside the merits of permanently linking it to changes in life expectancy.
Several European countries, including the Netherlands, Italy and Portugal, already do this. The review will look at how these work in practice and the potential effect on socio-economic groups with lower life expectancy. It will also consider how changes to the State Pension might impact intergenerational fairness.
Sustainability
You might assume that it will be some time before the SPA is raised to 68, or beyond, given the fact that life expectancy has stalled in recent years. This plateauing is partly due to the Covid-19 pandemic, but other factors, such as rising obesity, physical inactivity and the type of foods we eat, are also thought to play a part.
But this actuarial data isn’t being considered in isolation. By looking at the longer-term sustainability of the State pension, this review will also be looking more broadly at the potential cost savings of increasing the SPA.
This may be important, given both the Labour Party and the Conservatives have publicly committed to retaining the triple lock on pensions, for the time being at least.
Understanding your State Pension
For those approaching retirement, it is worth checking when you will receive your State Pension — particularly if you are reaching your 66th birthday after April 2026. The increase to 67 will happen incrementally, so the exact date you get this payment will depend on the month you are born. You can check what you will get and when at gov.uk/check-state-pension
Could you postpone?
However it is important to remember that you don’t have to take your State Pension on that date. Those who do not need the income, perhaps because they are still working, or have pensions or income from other sources, can defer taking their State Pension, and will receive an uplift of around 5.8% for each year deferred when they eventually take the benefit.
But of course, those who defer are not receiving this money in the interim, so may not necessarily be better overall.
Ultimately, whether it pays to defer depends on how long you eventually live, which none of us knows in advance. There may also be tax implications to take into account, so speaking to an adviser about your options is important before taking any decisions.
You can find more information and guidance on our Pensions Awareness Hub.
Read moreRisk Warnings
The Financial Conduct Authority does not regulate tax advice. Tax treatment varies according to individual circumstances and is subject to change.
Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.
Investments do not offer the same level of capital security as deposit accounts. The value of the investment and the income from it can fall as well as rise and investors may not get back what they originally invested.
The Financial Conduct Authority does not regulate will writing and some forms of estate planning.
Past performance is not a reliable indicator of future performance.
Occupational pension schemes are regulated by The Pensions Regulator.
MHA Wealth Disclaimer
MHA Wealth is the trading name of MHA Wealth Ltd, a company registered in England (1916615) with registered office at The Pinnacle, 150 Midsummer Boulevard, Milton Keynes, MK9 1LZ.
MHA Wealth is authorised and regulated by the Financial Conduct Authority (FCA) with registered number 143715 and is a member of the London Stock Exchange.
MHA Wealth is a member of the MHA group.
Further information on the MHA group can be found at: www.mha.co.uk
MHA is an independent member of Baker Tilly International Limited, the members of which are separate and independent legal entities.
Arrandco Investments Limited is the registered owner of the UK trademark for the name Baker Tilly. The associated logo is used under licence from Baker Tilly International Limited.
Further information can be found via our website: www.mha.co.uk/terms-and-conditions
© 2025 MHA. All rights reserved.
