Experts warn state pension age could soon rise to 71

The new Labour government has been issued a stark warning by experts who say there is a need to take action over the affordability.

Andrew Oxlade, Director at Fidelity International, warned that the state pension age increase shows no sign of stopping and should be 'dealt with imminently'.

"Consider, for instance, the violent pensions protests that have repeatedly erupted in France and the Russian demonstrations of 2018," he said.

Labour MP Rachael Maskell "We're still in the cost of living crisis.. I'm urging Rachel Reeves to find a way to protect our pensioners.. To ensure they can pay their energy bills" @RachaelMaskell

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"The reason this issue may return to the headlines in the UK in the coming months is because a decision to accelerate the rises was delayed ahead of the election but will need to be dealt with imminently."

He continued: "As a result [of the triple lock], State Pension payments have grown relatively quickly over the past decade. The bulge in Baby Boomers reaching retirement further increases the cost pressure.

"...The primary ways to mitigate this are either slower rises in the State Pension, which would involve watering down or abandoning the triple lock, or to increase the age of State Pension eligibility."

He said: "Various think-tanks have warned about the unaffordability of the State Pension. The latest came earlier this year from the International Longevity Centre.

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"It suggested the State Pension age would have to rise to 70 or 71 by 2050 to remain affordable. The ILC warned of ‘widening demographic imbalances’ that would heap pressure on government finances. It also highlighted that younger people lack the savings and assets that their parents and grandparents had.

"In 2010, those under 40 held just £7.53 of every £100 of wealth. Over the past decade, this has fallen significantly to only £3.98, its analysis showed."

The warning comes amid hopes the Triple Lock could see state pension payments hiked by north of four per cent next April.