'Work Until You Drop?' Fury as Pension Age Could Hit 71 While Brits Struggle to Save for Retirement

Millions of Britons face working until 71 before claiming their state pension, with government warnings revealing that nearly half of working-age adults having no retirement savings, sparking nationwide concerns about the future of retirement.

Prominent think tanks, such as the International Longevity Centre and Institute for Fiscal Studies, warn that Britain's ageing population and plummeting birth rates make current pension provisions unsustainable without significant intervention.

The review comes as the government grapples with growing financial pressures due to increased life expectancy, with existing plans already scheduling rises to 67 by 2028 and 68 by 2046.

Government Launches Pension Age Review

Work and Pensions Secretary Liz Kendall has ordered an urgent review of the state pension age, currently 66, after new data revealed that 45% of working-age Britons aren't saving into any pension scheme.

The re-established Pensions Commission will examine whether the retirement age should rise to 71 by 2040-2050 to ensure the system's sustainability.

The review is motivated by cost pressures tied to an ageing population and has revealed that 45% of working-age adults aren't saving into a pension at all.

Why Age 71?

The recent research from the International Longevity Centre (ILC) and the Institute for Fiscal Studies (IFS) suggests that, with rising life expectancy and declining birth rates, sustaining current pension levels may require increasing the retirement age to 70 or 71 by 2040–2050.

In practice, ages 67 and 68 are already planned for between 2026 and 2046.

Public Concern and Outrage

Critics contend that the proposal, referred to as 'work until you drop', would disproportionately affect those in physically demanding jobs or with pre-existing health challenges. A Guardian comment piece characterised the prospect as a 'call to echo the French and express dissatisfaction', warning of a stark generational divide (The Guardian). Meanwhile, the National Pensioners Convention has called raising the age to 71 as not accurately reflecting the challenges of ageing in the UK.

Implications for Retirement

Analysts have expressed concerns that delaying the pension age could compel many to work well into their 70s, despite a large number suffering ill-health by that stage. Data shows that by age 70, only half of adults in England and Wales are disability-free and able to work. The IFS warns that lower-income workers would be disproportionately affected.

Britain's Pension Savings Crisis

Private savings deficits exacerbate the problem: nearly half of private sector workers contribute 8% or less of their earnings to pensions, and self-employed workers are particularly disadvantaged. A report by The Guardian highlighted rampant pensioner poverty, with many retirees forced to keep working due to rent and bills.

This funding gap is behind the revived commission's initiatives, and the urgency in reviewing pension age policy now.

Other Countries Moving Ahead

The UK isn't alone. Denmark plans to raise the retirement age to 70 by 2040, while France has already faced massive strikes over pension age reform. Projections suggest that without reform, the UK may follow suit with a minimum age of 71.

The Triple Lock Dilemma

The Triple Lock is a UK government policy that guarantees the state pension will rise each year by the highest of inflation, average wage growth, or 2.5%. Introduced in 2010, it was designed to protect pensioners' incomes and reduce poverty among the elderly.

However, in recent years, especially amid soaring inflation and economic uncertainty, the policy has placed significant strain on public finances, prompting debates over its sustainability.

Critics argue that maintaining the triple lock risks unsustainable increases in government expenditure as the population ages. At the same time, supporters caution that suspending or weakening it would harm pensioners who rely heavily on the state pension.

The upcoming Pensions Commission review will need to carefully balance protecting pensioners' living standards with fiscal responsibility, making the future of the triple lock a central and challenging issue.

What Happens Next?

The newly revived Pensions Commission, chaired by Baroness Jeannie Drake, will report in 2027, outlining recommendations for balancing the state pension age with private savings.

Meanwhile, the state pension age remains on track to rise to 67 by 2028 and 68 by 2046, unless future reviews accelerate this trajectory.