The rise in the state pension age to 68 could be brought forward by seven years, according to OBR documents.
The current legislated timetable is for state pension age to rise to 67 between 2026 and 2028 and 68 between 2044 and 2046.
However, the government is pushing ahead with proposals to move the rise to 68 from 2044 to 2037, the OBR documents show.
"If the state pension age were to rise to 68 in 2044-45 in line with legislation, rather than the Government’s stated policy that the rise to 68 will happen in 2037-39, this would cost an average additional £6 billion in today’s terms in each of the years the state pension age rise is delayed", the .
The change means around five million people would have to work for an extra year before being eligible for their state pension. Those set to be affected by the rise are currently aged between 49 and 55, with the rise ultimately costing individuals around £12,500.
Speaking to The Times, the OBR said: "We assume that the state pension rises to 68 in 2037-39. The Treasury has confirmed to us that this is the government’s current policy position, rather than the legislated increase set in the Pensions Act 2007.”
A government spokesperson commented: "The previous government publicly committed to raising the State Pension age to 68 between 2037 and 2039, and the OBR has reflected that position for years.
“The State Pension age Review, which will consider what the timetable for State Pension age should be in the coming decades, is currently underway and we cannot pre-empt the outcome.”
Adam Cole, retirement specialist at Quilter, commented: "Reports that the state pension age might rise to 68 sooner than currently legislated will be unwelcome news for many workers approaching retirement. However, it is also a stark reminder of a reality that policymakers have been grappling with for years, which is as we live longer and the population ages, the cost of providing a state pension becomes increasingly difficult to sustain.
"The state pension remains the bedrock of retirement income for millions of people, but there is a growing mismatch between the number of people drawing it and the number of working-age taxpayers funding it. In that context, future increases to the state pension age are not especially surprising. Indeed, if governments wish to maintain the generosity of the state pension, particularly under the triple lock, raising the state pension age becomes one of the few levers available to control costs.
"The triple lock has undoubtedly been successful in improving pensioner incomes and reducing pensioner poverty. However, it has also created a significant fiscal commitment. While politically popular, it raises legitimate questions about long-term sustainability, particularly when public finances are already under pressure and younger generations are facing the prospect of working longer before they can access their state support.
"Rather than relying solely on government provision, individuals should view developments like this as a reminder of the importance of building their own retirement savings. The good news is that the figures involved are often less daunting than people expect. Our calculations suggest that someone aged 49 could build a fund capable of replacing a year's projected state pension with contributions costing just over £50 a month after basic-rate tax relief. Even someone aged 55 could potentially achieve the same outcome for around £75 a month net.
"While no one welcomes changes to the goalposts, these examples highlight the power of starting early. Small, regular pension contributions, combined with tax relief and investment growth over time, can provide valuable flexibility and help reduce dependence on an increasingly stretched state pension system.
"The debate around the future of the state pension is unlikely to disappear. Whether through changes to the triple lock, further state pension age increases or a combination of both, future retirees should expect reform to remain firmly on the agenda. For many people, the best defence against that uncertainty is to take greater ownership of their retirement planning today."
Catherine Foot, director of the Standard Life Centre for the Future of Retirement, added: “The state pension remains a critical element of retirement incomes in the UK for millions of people, and the reports that state pension age increases could be accelerated are a reflection of the difficult balancing act Government faces in keeping the system affordable while people live longer, and ensuring it remains fair and adequate for those who rely on it.
“The challenging reality is that our research shows the pressures are already being felt most acutely by those least able to adapt to the current increase. Over a quarter of those directly affected by rises in state pension age say they are struggling to make ends meet day-to-day – compared to just one in seven of those above state pension age – and more than a third of people in their early 60s say they expect they will need to work for longer as a result.
"However, our modelling shows that 44% of defined contribution pension savers who could be affected by a rise in the state pension age to 68 are already not on track to achieve the retirement they expect. What's more, around one in seven (14%) are not confident they can work until their planned retirement age and lack significant private wealth to fall back on.
"The impact is also uneven across income groups, with twice as many lower earners expecting a significant impact on their household finances compared with higher earners. An additional consideration if these changes come to pass is the impact it will have on Gen X who would be the first affected. This generation haven’t received the full benefit of either Defined Benefit or Defined Contribution pension systems and as result, many are currently tracking towards a significant drop in living standard in retirement.
“An official review of the state pension age is underway so we should not take these reports as the outcome but the discussion about how we balance fairness and affordability of the state pension is one we can expect to hear much more on in the coming months.”
