As ministers examine plans to increase by seven years the state retirement age of those born in 1970s, millions could be without pensions.

  • Department for Work and Pensions could see an overhaul of state pension age
  • Retrospectives could show that those who were born in 1970s see their pension age increase by seven years
  • The review will look at whether or not workers should wait till they reach the age of 68 before receiving their 2037 pension.

A major reform of the state pension age could force millions to scrap their retirement plans.

The Department for Work and Pensions announced yesterday that it could allow for seven year increases in the age of state retirement for persons born between 1970 and 1980.

It will be led by Baroness Neville-Rolfe (Tory peer), and it will examine whether workers should wait to receive their state pensions until they turn 68, instead of waiting for 2044, as is currently the law.

In 2026 and 2028, the average age for which someone may start to receive their state retirement pension will increase gradually from 66 in 2028 to 67 in 2026.

A review announced by the Department for Work and Pensions yesterday could pave the way for plans to increase the state retirement age for those born in the 1970s by seven years (stock image)

Yesterday’s Department for Work and Pensions announced that it could open the door to plans for a seven-year increase in the state retirement age for people born between 1970 and 1973 (stock photo).

The current forecast is for it to rise to 68 by 2044-2047. However, the review will take into account Government plans to move this to 2037-2039.

The state pension is currently worth more than £9,350 a year to retirees. Critics are concerned that the Government may increase the retirement age to help save money.

Baroness Altmann, a former pensions minister, said: ‘If [the review] is a smokescreen to justify raising the state pension age further, that would be a serious mistake and a very bad social policy decision.’

She said that the Tory peer hoped instead for a review to allow some people to retire earlier in case they have a low life expectancy, or are in poor health.

She said: ‘We already pay the lowest state pension in the developed world. We already have a pension system that is stacked against those who aren’t well off. It is wrong to look to cost savings in that area.’

Sir Steve Webb, a former pensions minister, said that there is a possibility the Government will increase the age of state pension regardless of any review.

Led by Tory peer Baroness Neville-Rolfe (pictured), it will consider whether workers should wait until 68 to collect their state pensions from 2037, rather than 2044 as currently set out in law

The group, led by Tory peer Baroness Neville-Rolfe (pictured), will look at whether workers should wait until age 68 in order to get their state pensions starting from 2037 rather than 2044.

‘There is a risk [the review] is for show and they will just do what the Treasury tells them,’ he added.

Becky O’Connor, of the investment service Interactive Investor, said: ‘Many will have spent much of their working life expecting to retire at 65. These people have already been disappointed and are likely to again.

‘Continually moving the goalposts like this doesn’t just provoke disillusionment, it has big implications for retirement planning.’

Work and Pensions Secretary Therese Coffey, announcing the review, said: ‘We need to make sure our decisions on how to manage the costs of state pension provide fairness to both taxpayers and pensioners.’