Pensioners have been given yet another dire warning as Labour could hike the retirement age to 70 before their time in office is over, an expert has warned.
The state pension age is currently 66 and set to rise to 67 between 2026 and 2028, and again to 68 between 2044 and 2046.
However, alarm bells are now ringing over the possibility that the current Labour government could move to accelerate this increase, allowing them to rake in an extra £6 billion a year.
Kevin Mountford, finance expert and co-founder of Raisin UK, warned that it “wouldn’t be surprising” to see Keir Starmer’s party proposing to up the pension age to 69 or 70.
He told the Express: “While the planned rise to 67 years by 2028 is already in motion, there’s now speculation about the Labour government potentially accelerating a further increase to age 68 – or even higher.
“Given current trends and pressures, it wouldn’t be surprising if proposals emerged to increase the pension age to 69 or 70 years over the next decade, particularly if life expectancy projections stabilise.
Mountford stressed that increasing the state pension age three or four years would be incredibly detrimental to the most country’s most vulnerable pensioners, many of whom are still grappling with having their winter fuel payment stripped.
He added: “Understandably, this would be another deeply unpopular decision taken at a time when the country is still reeling from recent Budget announcements, including the likes of winter fuel allowance changes.”
“For many, especially those in lower-income or physically demanding jobs, delaying the state pension could result in significant financial and health challenges.
“If Labour does decide to push the pension age beyond age 67, it’s essential to have a well-thought-out transition plan, such as enhanced support for individuals nearing retirement who are already struggling financially.
“The short-term fiscal benefits must not come at the cost of long-term societal inequality.”
This comes after the Express exclusively revealed the government could pocket an extra £6 billion a year by raising the state pension age from 66 to 67 between 2026 and 2028.
According to a report by the Institute for Fiscal Studies (IFS) and pension provider abrdn, there are groups of pensioners and people reaching retirement age particularly at risk of falling below the poverty line, such as those privately renting.
The report said the government could provide extra support to those who were a year below state pension age and on universal credit, which would cost £600 million a year and reduce poverty in around 30,000 households.
Labour could also increase support only to those receiving both universal credit and health-related benefits, which would cost around £200 million a year and reduce poverty in 3,000 households.
The Treasury and Department for Work and Pensions have been approached for comment.
