A key update on the state pension could be unveiled at the upcoming Spring Budget, an expert has hinted. The looming increase of the state pension age from 66 to 67 between 2026 and 2028 is raising concerns about other changes to the policy.
There was a review under the previous Government in 2023 assessing the situation. At the time, ministers were reportedly considering accelerating the rise from 67 to 68, which is currently planned for between 2044 and 2046.
When the 2023 review came out, ministers promised a “further review” within two years of the current Parliament. Fiona Peake, a personal finance specialist at Ocean Finance, commented to say: “With part two of the pensions review approaching, we’re likely to see fresh discussion around the state pension age and whether changes are needed to keep the system sustainable.
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“The Government has previously stated there would be a review within two years of this Parliament about the planned rise in the state pension age to 68, so we could be looking at an announcement around the Spring Budget.” Chancellor Rachel Reeves is set to deliver her Spring Budget on Wednesday, March 26, 2025.
A DWP spokesperson confirmed: “There is a statutory requirement to review the state pension age set out in the Pension Act 2014 and in line with legislation, the next review must be completed by the end of March 2029.”
Ms Peake outlined the key factors that could influence future changes to the state pension age. She commented to say: “Whether or not the state pension age increase from 67 to 68 is brought forward will depend on a balance of affordability and fairness.”
Rachel Reeves
She continued: “Life expectancy trends, workforce participation, and public finances will all come into play. If we’re living longer and working later, it might seem logical to shift the state pension age forward, but such changes can feel deeply unfair to those in physically demanding jobs or with health issues, who may struggle to work into their late 60s.”
Ms Peake also warned that many people may be caught unawares by the upcoming rise in the state pension age from 66 to 67, pointing out there is a particular risk that lower-income workers and those not closely following pension policy developments won’t be aware. Emphasising the need for clear communication, she said: “Employers, the Government, and organisations like the Pension Advisory Service all need to make sure these changes are well-communicated.
“Otherwise, people could face a nasty shock when they realise they’ll need to wait longer than expected to access their state pension.” The Spring Budget will come just a week and a half before the 4.1 percent rise in state pension payments from April, in line with the triple lock policy.
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The uprating will see the full new state pension rise from £221.20 a week to £230.30 a week, while the full basic state pension will increase from £169.50 a week to £176.45 a week.