State pension age could hit 80 unless major changes made, expert warns
Urgent warning made over UK state pensions
- An industry expert has warned that the UK state pension age may need to rise to 80 without significant reforms, as the current system is becoming unaffordable.
- The state pension age is already scheduled to increase from 66 to 67 by 2028, with a further rise to 68 expected to be brought forward from 2046.
- The Office for Budget Responsibility projects the annual cost of the state pension could reach £200 billion by 2073, representing 7.7-8.4 per cent of GDP by the 2070s.
- Pensions expert Jack Carmichael suggests the cost could be even higher than official projections, potentially necessitating a state pension age of 80 to maintain affordability.
- To manage spiralling costs, the government may be compelled to either raise the state pension age more rapidly or reform the triple lock mechanism.