The state pension age is set to rise to 68, but the government's plans are causing a stir. With the Office for Budget Responsibility (OBR) indicating a move from 2044 to 2037, the Treasury has confirmed the decision, despite the lack of legislation. This means around five million people aged 49-55 will have to work an extra year, costing them £12,500. The OBR report suggests this change will cost an average additional £6 billion annually if delayed. A review of the state pension age, led by Dr Suzy Morrissey, is underway, but the recommendation to raise it to 68 by 2037 dates back to 2017. Any change must be legislated with at least a decade's notice, so the 2037 plan needs to be in place by next year. Pensions minister Torsten Bell acknowledges the need for a sustainable state pension, but the government's final decision remains unclear. Economist Paul Johnson supports the move, citing the need to keep pace with increasing life expectancy and improve the long-term fiscal position. However, the government must also address other areas like the triple lock. The Treasury, however, dismisses the plans as 'not new information', and the state pension age review is ongoing. With the current increase to 67 already in effect, the future of state pensions is a complex and contentious issue.
