UK State Pension age to rise to 67 amid sustainability concerns

The United Kingdom is set to increase the State Pension age from 66 to 67, with the transition occurring between April 2026 and April 2028. While the change may be manageable for healthy individuals in secure employment, experts warn of significant financial risks for vulnerable groups.

Tax expert Andy Wood of Tax Barrister UK identified seven groups likely to face the greatest impact: individuals in lower-income roles, those with periods of unemployment, people unable to access housing wealth, residents of deprived areas, those with disabilities or poor health, caregivers, and those without sufficient savings. These factors often overlap, potentially creating severe financial gaps for those unable to work longer.

Concerns regarding the long-term sustainability of the state pension persist. The Office for Budget Responsibility estimates that pension costs, currently around 5 per cent of GDP, could nearly double to 9 per cent by the 2070s due to an aging population. Additionally, the ‘triple lock’ mechanism—which ensures pension increases match inflation, wage growth, or a minimum of 2.5 per cent—is projected to cost the government an extra £15bn annually by 2030.