The Government is reportedly planning to bring forward a proposed increase in the state pension age to 68 to the 2030s.
Under current plans, the state pension age will rise from 66 to 67 by 2028, and then to 68 between 2044 and 2046.
The full flat-rate state pension is worth £185.15 per week in 2022/23 and is set to rise by 10.1% to £203.85 per week in April.
Government review of the state pension age expected to be published in early 2023.
Tom Selby, head of retirement policy at AJBell, comments: “Rishi Sunak will be playing with political fire if he decides to accelerate the planned increase in the state pension age to 68. The latest official data suggests average life expectancy improvements – the main justification for state pension age increases – have gone into reverse since the pandemic.
“From the Treasury’s perspective, bringing forward the planned increase could be a huge money spinner, likely raising tens of billions in revenue – funds that are desperately needed in the wake of the pandemic and the costly energy support package. The big question is whether No.10 agrees this Exchequer boost is worth the inevitable pain at the ballot box.
“Even if the Treasury makes the argument this shift is necessary to steady the nation’s finances and ensure the state pension remains sustainable over the long-term, telling millions of people they will have to wait longer for their pension might prove the final nail in the coffin of the Conservatives’ hopes of winning the next general election.
“For savers, this is another reminder that while the state pension provides a valuable foundation upon which to build your retirement plans, both how much you receive and when you receive it remains at the whim of politicians.
“This is one of the reasons it is vital you build your own retirement pot, taking advantage of the retirement savings incentives on offer, any employer contributions available and tax-free investment growth.”