State pension age update as triple lock now at risk - 'Government's hand could be forced'

The triple lock could be reformed as a review on the state pension age gets underway, an expert has warned. The Government is required to carry out a review every six years, with the latest announced by the Chancellor set to conclude in 2029.

Rachel Reeves said the review into raising the state pension age is required to ensure the system is "sustainable and affordable" and that it was "right" to assess the age at which people can receive the payments as life expectancy increases. However, an expert has warned the future of the triple lock could be uncertain amid concerns over the rising annual cost of the state pension. Rachel Vahey, head of public policy at AJ Bell, said this latest review "may eventually force the Government's hand" and warned there could be changes to the triple lock.

"State pension benefits are one of the single biggest expenses for the Treasury and account for more than 80 per cent of the £175bn pensioner welfare bill," she said, according to The Independent.

"Without policy intervention, state pension costs are set to spiral to nearly 8% of GDP over the next 50 years based on the current trajectory, up from 5.2% today.

"One option is to raise the state pension age higher and faster than currently planned."

She added: "Although the elephant in the room is that state pension age is just one lever Government has to help manage the cost of the state pension - the other is reforming the triple lock."

The triple lock guarantees the state pension increases each April by the highest of three measures; average wage growth, inflation from the September prior or 2.5%.

Rising inflation levels means pensioners could get an almost £500 boost to their state pension next year.

The state pension age is currently 66, rising to 67 by 2028, with the Government legally required to periodically review the age.

In a new report, the Office for Budget Responsibility (OBR) said rising life expectancy and the triple lock could push the cost of state pension from £138 billion a year to £200 billion by 2073.

Jack Carmichael, of consultants Barnett Waddingham, said the actual rise could be up to £8 billion a year more and warned this would require increases to the state pension age or National Insurance contributions.

He told The Telegraph the state pension age could potentially be pushed up to "the dizzying heights of 80" as a result.