State pension age 'may need to rise to 70' as triple lock threatened

State pension reform is once again at the forefront of debate as the country's mounting financial pressures have led experts to predict a hike in the retirement age to 70 may come sooner than planned. Additional calls have been made for Chancellor Rachel Reeves to reconsider the triple lock policy.

The state pension age is currently 66, set to rise to 67 by 2028, with further increases planned for later decades. However, financial advisers and think tanks are pushing for faster action, citing demographic shifts and rising costs that threaten long-term sustainability. Speaking among other experts to Newspage, Samuel Mather-Holgate, an independent financial adviser at Swindon-based Mather and Murray Financial, said: "The state pension system is ripe for squeezing, so an increase to the state pension age is coming down the tracks, probably to 70. Changing the triple lock would save a fortune, but it would be politically difficult as the older generation votes."

The pension system already consumes nearly 5% of the UK's GDP, a figure expected to soar to almost 8% within the next 50 years.

The Office for Budget Responsibility (OBR) warned that the cost will exceed previous estimates by £10billion annually due to volatile inflation and stagnant wage growth since 2012.

The triple lock guarantees pensions increase annually by the highest of inflation, earnings growth, or 2.5%. However, it has been flagged as a major driver of rising expenditure, adding an estimated £23billion more to annual pension spending by 2030 compared to inflation-only increases.

Institutes such as the Institute for Fiscal Studies argue for a more measured approach, proposing that the state pension age rise in line with life expectancy while ensuring workers receive ample notice before changes take effect.

They suggest phasing out the triple lock once a sustainable replacement rate is reached, in favour of a smoother, more predictable pension uprating system.

Economists have supported the idea that the triple lock policy should be replaced with a new measure, arguing that the policy's current trajectory is unsustainable.

Economist Ben Ramanauskas wrote on X: "Triple Lock needs to be replaced with a single lock indexing the State Pension to average earnings growth. It will be far more sustainable and give pensioners more of a stake in productivity gains."

However, the Government has said it was "committed" to retaining the current policy until the end of parliament. Responding to the report, a Treasury spokesperson said: "We are committed to supporting pensioners and giving them the dignity and security they deserve in retirement."

A Government review of the state pension age will be published in 2027.