Government announces early review of state pension age in bid to boost retirement income

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21 July 2025, 10:54 | Updated: 21 July 2025, 11:17

The government has announced a review of state pension age amid concerns over retirement savings.

Liz Kendall said Labour is reviving the pensions commission because the “job is not yet done”.

“Put simply, unless we act, tomorrow’s pensioners will be poorer than today’s, because people who are saving aren’t saving enough for their retirement.

“And crucially, because almost half of the working age population isn’t saving anything for their retirement at all,” the Work and Pensions Secretary said during a speech to launch the move.

The commission is expected to provide recommendations for how to boost retirement income in 2027.

She also announced the next statutory government review into the pension age.

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She said she was “under no illusions” about how difficult it would be to map out plans for pensions for the coming decades amid cost-of-living pressures.

She conceded 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, long way away, and many businesses face huge challenges in keeping profitable and flexible in an increasingly uncertain world”.

Speaking in west London, the work and pensions secretary also announced that she would be reviving the Pension Commission.

She explained the move would look into why future pensioners are on track to be poorer than pensioners now.

The announcement follows warnings from experts that those looking to retire in 2050 are set to receive £800 per year less than current pensioners – despite soaring levels of inflation.

The Department for Work and Pensions (DWP) said 45% of working-age adults were putting nothing into their pensions, according to the latest figures.

“Put simply, unless we act, tomorrow’s pensioners will be poorer than today’s, because people who are saving aren’t saving enough for their retirement,” Ms Kendall said.

“And crucially, because almost half of the working age population isn’t saving anything for their retirement at all,” the Work and Pensions Secretary said during a speech to launch the move.