The United Kingdom’s state pension system is bracing for seismic changes, as government reviews and new data reveal a future where Britons may have to work longer and save more just to secure a comfortable retirement. With the state pension age set to rise and persistent gender gaps in pension savings, the debate over the sustainability and fairness of the UK’s retirement system has become increasingly urgent.
Currently, the state pension age stands at 66, but this is only the beginning of a series of scheduled increases. By 2028, the age will rise to 67 for all men and women across the UK, a change expedited by the Pensions Act 2014. Those born between March 6, 1961, and April 5, 1977, will become eligible to claim the state pension at age 67, according to the Daily Record. Looking further ahead, another increase to 68 is slated between 2044 and 2046, reflecting the government’s ongoing effort to keep pace with rising life expectancy and the financial pressures of an aging population.
But the most dramatic shift may still be on the horizon. Chancellor Rachel Reeves has indicated that a review into raising the state pension age to 70 is necessary to ensure the system remains “sustainable and affordable.” This review, set to report in March 2029, will factor in life expectancy and the proportion of adult life spent in retirement, as well as a host of economic and demographic considerations. As Reeves explained, “it is right to examine the age at which people can start receiving the state pension as life expectancy continues to increase.”
Experts agree that the pressure on the system is mounting. Samuel Mather-Holgate, an independent financial adviser at Mather and Murray Financial, told Newspage, “The state pension system is ripe for squeezing, so an increase to the state pension age is coming down the tracks, probably to 70. Changing the triple lock would save a fortune, but it would be politically difficult as the older generation votes.”
The numbers are stark. The pension system currently consumes nearly 5% of the UK’s GDP, a figure expected to soar to almost 8% within the next half-century. The Office for Budget Responsibility (OBR) has warned that the cost will exceed previous estimates by £10 billion annually. These projections have fueled the government’s urgency to act, with a legally mandated review of the pension age scheduled every five years.
Not everyone is on board with these changes. Unions have voiced fierce opposition, warning that any rise in the pension age could trigger strikes and widespread protests. Eddie Dempsey, general secretary of the Rail, Maritime and Transport union, minced no words in his criticism: “The UK state pension is already one of the worst in the entire developed world, which is a direct result of decades of governments transferring both our national and personal wealth to the super rich. Any decision to squeeze more out of working people by forcing us to work even longer would be a national disgrace.” Dempsey also highlighted the physical demands on workers, especially those in shift work and safety-critical jobs, adding, “Raising the pension age even further isn’t just cruel and unnecessary, it’s a slap in the face to the very people who keep this country running.”
In response, a government spokesperson emphasized efforts to support pensioners: “Supporting pensioners is a top priority, and thanks to our commitment to the triple lock, millions will see their yearly state pension rise by up to £1,900 by the end of this parliament. We have also run the biggest-ever campaign to boost pension credit take-up, with nearly 60,000 extra pensioner households being awarded the benefit, worth on average around £4,300 a year.” Still, the government acknowledged the looming risk that “tomorrow’s pensioners will be poorer than today’s,” leading to the revival of the Pension Commission to tackle barriers to pension savings.
Alongside these policy changes, new research has thrown a spotlight on persistent gender disparities in pension savings. According to online pension provider PensionBee, male pension savers contributed 27% more than their female counterparts during the first half of 2025. While men deposited an average of £1,845 each quarter, women managed only £1,347—a gap of £498 per quarter. Male pension payments even dropped by 4% compared to the previous year, while female savings remained almost static. Lisa Picardo, Chief Business Officer UK at PensionBee, warned, “We can’t allow today’s contribution gaps to become tomorrow’s poverty in retirement. The fact that male savers consistently contribute over 25 per cent more than female savers reflects systemic inequalities that compound over decades.”
Yet, the story isn’t entirely bleak for female investors. Maria Collinge told PensionBee that women tend to take a steadier, more thoughtful approach to investing, which has paid off. A study by Warwick Business School revealed that women traded only nine times a year versus 13 for men, but their portfolios outperformed men’s by approximately 1.8% annually. “While both women and men tend to stick to their investment plan during turbulent times, men are more prone to act. For example, by increasing or selling their investments altogether. Whereas women don’t make impulsive knee-jerk reactions when volatility hits,” Collinge explained. She added, “Women aren’t risk averse, they’re risk aware. Women prefer a long-term approach and invest in companies with steadier long-term performance. They’re more likely to ask questions, vet what they’re buying, and stay invested through ups and downs—which could result in better outcomes.”
For those seeking to maximize their state pension, the government has introduced new digital services to make the process easier. Since last year, over 10,000 payments totaling £12.5 million have been made by individuals using the online platform to enhance their state pensions, according to HM Revenue and Customs (HMRC). However, the window for making voluntary National Insurance (NI) contributions to fill gaps in pension records is closing fast, with a deadline of April 5, 2025, for contributions dating back to 2006. Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners, noted, “People typically need at least 10 qualifying years of NI contributions to receive any state pension at all and at least 35 years to receive the full new State Pension—though they don’t need to be consecutive years.”
She cautioned that plugging gaps can be expensive and advised individuals to assess their personal circumstances before buying back missing years. “Plugging gaps in your record is relatively straightforward since the Government rolled out its new NI payments services in April last year—a State Pension forecast tool that has been checked by 3.7 million since its launch,” Haine said. “People simply need to log into their personal tax account or the HMRC app to not only view any payment gaps but also check if they can plug those gaps directly through the Government’s digital channels.”
As the UK’s pension landscape continues to evolve, those approaching retirement—and even those decades away—are being urged to stay informed and proactive. With the state pension age on the rise, gender gaps persisting, and new tools available to help savers, the message is clear: planning for retirement has never been more important, or more complex.
