The Labour Government's decision to review the state pension age three years earlier than required has result Britain's largest railway workers' union to threaten demonstrations and direct industrial action.
Work and Pensions Secretary Liz Kendall revealed the early assessment earlier this week (July 21) while establishing a new pensions taskforce. The statutory assessment arrives as ministers grapple with warnings that 45 per cent of working-age people are putting aside no retirement savings whatsoever.
Eddie Dempsey, the general secretary of the Rail, Maritime and Transport (RMT) union, stated: "If this Government makes any move to drastically increase the retirement age, we intend to lead our movement onto the streets and will not hesitate to protest nationally and take co-ordinated direct action."
The RMT leader emphasised the particular challenges facing railway employees, stating: "Our members work in physically demanding, round-the-clock, safety-critical jobs. Many already struggle to reach retirement in good health, especially shift workers."
GETTY / PA
|RMT is threatening action if Labour hikes the state pension age
Dempsey condemned Britain's pension provision, declaring: "The UK state pension is already one of the worst in the entire developed world, which is a direct result of decades of governments transferring both our national and personal wealth to the super rich."
As it stands, the UK's retirement age stands at 66 and will increase to 67 between 2026 and 2028.
Under existing plans, it would reach 68 between 2044 and 2046 but this is subject to change.
Governments must examine the retirement age every six years by law, with the previous assessment completed in 2023.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
GETTY | Britons are concerned about the rise in the state pension age This third review will evaluate whether planned timings remain suitable, examining recent mortality statistics and generational equity.
Two independent analyses will inform ministerial decisions about future decades. The assessment will scrutinise previous retirement age modifications, budgetary implications and effects on taxpayers and pension recipients.
Financial consultancy Broadstone's Damon Hopkins suggested ministers might accelerate the timeline for raising the pension age, stating: "The combination of an ageing population and the huge fiscal cost of the state pension would suggest that a change is inevitable."
Ministers face mounting pressure over retirement savings, with Kendall acknowledging that "many workers are more concerned about putting food on the table and keeping a roof over their heads than saving for a retirement that seems a long way away."
The newly-formed taskforce, headed by trade unionist and Labour peer Baroness Drake, will address obstacles preventing adequate retirement preparation.
Britain's ageing demographics and escalating state pension expenses have intensified concerns about system viability.
LATEST DEVELOPMENTS:
PA | Older Britons are worried about the future of the state pension triple lock The Office for Budget Responsibility (OBR) has calculated that maintaining the triple lock guarantee could require an additional £15.5billion annually by 2030.
This mechanism ensures pensions increase by whichever is greatest: wage growth, inflation or 2.5 per cent.
Retirement policy specialist Kirsty Anderson from Quilter described the review as "politically sensitive", whilst noting any acceleration must be supported by current mortality data.
Policy experts have cautioned against blanket increases. Lily Megson-Harvey from My Pension Expert warned that extending the working age "could disproportionately impact those who are already struggling to save enough and often rely more heavily on the state pension for financial security in retirement".