More rapid and aggressive increases to the state pension age "cannot be ruled out" due to concerns over the long-term financial viability of the triple lock, according to retirement analysts.
Wealth management firm Fidelity International is sounding the alarm over the state pension's growing cost, and the likely need to reform how and when the retirement benefit is paid to older Britons.
The state pension age currently sits at 66 years and is expected to rise to 67 between 2026 and 2028 for those born after April 1960. Once someone becomes of age, they are able to access their payment entitlement.
As it stands, Britons need to have 35 years of National Insurance contributions under their belt to qualify for the full, new state pension, which currently offers £230.25 per week.
The state pension the is forecast to rise in the near future
GETTYIt is forecast that the state pension age will jump from 67 to 68 sometime between April 2044 and April 2046, however this is subject to change as increases are based on multiple factors, including life expectancy data.
Recently, Denmark passed a law raising the nation's state pension age to 70 by 2040 with analysts warning that a similar policy could be rolled out in the UK to address surging costs.
Ann Widdecombe, the former Conservative Party MP and current immigration spokesperson for Reform, has claimed it is "almost inevitable" Britain's retirement age will follow a similar trajectory.
According to Fidelity's own research, the state pension as a proportion of gross domestic product (GDP) has surged in recent years; peaking at 5.06 per cent of GDP by the 2023-24 tax year.
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Pensions minister Liz Kendall has not addressed the future of the state pension
PAEd Monk, an associate director at Fidelity International, explained: "It is then predicted to fall in the coming years - based on assumptions of cost and growth - but that is uncertain.
"The longer-term trend is clear. The Office for Budget Responsibility has forecast that the total pensioner spending could rise to around eight per cent of GDP by 2072/73 - and potentially even more if the economy continues to suffer weaker and more volatile growth.
"Further, or more rapid, rises cannot be ruled out but it would be hard to justify because improvement in life expectancy seem to have stalled. Reforming the triple lock is another potential cost-saving measure - although all the major political parties promised to keep the measure for this parliament."
Under the triple lock, state pension payment rates increase every year by either the rate of consumer price index (CPI) inflation, average earnings or 2.5 per cent; whichever is highest.
Earlier this year, retirement benefit payments rose by 4.1 per cent due to the average wage increase between May and July 2024 coming to 4.1 per cent. This was higher than the CPI inflation rate of 1.7 per cent.
In 2022, the triple lock was temporarily suspended with the link to inflation being scrapped after the CPI rate skyrocketed to a staggering 11.1 per cent amid the cost of living crisis.
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Ann Widdecombe has warned changes to the state pension are "almost inevitable"
ANN WIDDECOMBEIn light of this debate, Monk broke down why households should prioritise planning ahead when it comes to retirement to avoid being detrimentally impacted by any state pension changes.
He added: "With the state pension likely to come under increasing pressure, there is even more onus on individuals to fund their own retirement. Money paid into a pension normally benefits from tax-relief.
"Employees with access to company schemes can usually benefit from employer contribution made on their behalf. Ensure you make maximum use of any help on offer to improve your retirement prospects.
"And while you may not be able to control the future rises in the state pension, you can make sure you have a full contribution history to ensure you get the maximum available - whatever that turns out to be."
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