UK Ruling Party and Reform UK Open Door to Increasing Retirement Age Amid Budget Constraints

Labour and Reform UK have opened the door to increasing the retirement age to help cut government costs, despite potential backlash from the public. Work and Pensions Secretary Liz Kendall announced a new pension commission to review the state pension age, which is currently set at 66. Reform UK leader Nigel Farage also suggested that the retirement age may need to rise due to longer lifespans. The move comes as Chancellor Rachel Reeves faces pressure to meet fiscal rules and Prime Minister Keir Starmer has been forced to abandon some of his policies.

Title: Labour and Reform UK Open Door to Increasing Retirement Age to Cut Government Costs

The ruling Labour party and upstart rival Reform UK have both indicated a potential increase in the retirement age, a move aimed at reducing government costs. Work and Pensions Secretary Liz Kendall announced the launch of a new pension commission to review the state pension age, currently set at 66 [1]. This announcement comes three years ahead of the scheduled statutory review, indicating a proactive approach to addressing the retirement age.

Reform UK leader Nigel Farage also echoed this sentiment, stating that the retirement age would likely need to rise due to longer lifespans [1]. Both parties are grappling with fiscal pressures, with Chancellor Rachel Reeves facing challenges in meeting her fiscal rules and Prime Minister Keir Starmer having to abandon several policies due to internal rebellions [1].

The move to increase the retirement age is part of a broader effort to address the retirement crisis. Without action, tomorrow’s retirees are on track to be poorer than today’s, with millions undersaving for retirement [2]. The Pensions Commission, revived in 2025, will explore barriers to adequate pension savings and propose recommendations to build a future-proof pensions system [2].

The decision to increase the retirement age is expected to face significant public backlash, as seen in previous attempts to raise the state pension age [1]. However, both Labour and Reform UK believe that this move is necessary to secure the long-term financial sustainability of the pensions system.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-21/labour-reform-uk-open-door-to-increasing-the-retirement-age
[2] https://www.gov.uk/government/news/government-revives-landmark-pensions-commission-to-confront-retirement-crisis-that-risks-tomorrows-pensioners-being-poorer-than-todays