Is 68 the New 60? What Rising Retirement Ages Mean for UK Families
By the mid-2040s, the UK state pension age is expected to rise to 68. Meaning millions will work nearly 9% longer than previous generations.
That’s the uncomfortable headline facing UK families today. With wages stagnating, inflation remaining high, and living costs continuing to climb, a longer working life feels like yet another burden for UK families. For Gen X and millennials in particular, the dream of retiring in your 60s is rapidly fading.
Here’s what this shift means and the steps you can take now to secure your future.
Why Is the Pension Age Rising? And Could It Increase to 70?
The UK State Pension Age is currently 66. It will increase to 67 between 2026 and 2028, and is scheduled to rise again to 68 between 2044 and 2046.
But there is growing pressure to bring that forward, possibly to 2037. Some long-term forecasts even suggest the retirement age could reach 70 or 71 by 2050 to keep pace with an ageing population.
Why the shift? It’s simple demographics. By 2045, the number of people aged over 66 is expected to rise by 28% compared to 2020. More people are living longer, and the government is adjusting pension policy to balance the costs of supporting a growing retired population.
Who is Getting Impacted by this Change the Hardest?
Gen X (born 1965–1980): This generation may have to work well into their late 60s or early 70s. Many are juggling mortgage debt, childcare costs, and ageing parents — turning retirement planning into a complicated balancing act.
Millennials (1981–1996): With fewer defined-benefit pensions, lower homeownership rates, and higher living costs, the idea of retiring comfortably in your early 60s now feels out of reach.
When the pension age last rose from 65 to 66, it caused real financial strain:
- Households lost an average of £108 per week in income
- Poverty rates among single 65-year-olds more than doubled - from 16% to 38%
If future pension increases follow the same pattern, Gen X and millennials will bear the brunt.
How It’s Affecting Real Life?
Rising pension ages aren’t just a political adjustment: they’re changing how families live, work, and plan.
The idea of stepping back in your mid-60s is becoming less realistic. Many in their late 60s are still working, not by choice but by necessity. And that extra working time often overlaps with other life pressures: caring for elderly parents, supporting grown-up children, or managing health issues.
It’s a growing squeeze, especially for middle-aged families caught in the “sandwich generation”, responsible for both older and younger relatives, while trying to prepare for a retirement that keeps moving further away.
What Late Retirement May Means for Health, Fairness, and Quality of Life?
There’s also a human cost behind the statistics. Not everyone can work until their late 60s.
The numbers tell a tough story: Over 9% more 65-year-olds stayed in work after the State Pension Age rose from 65 to 66 which is about 60,000 people, reflecting necessity over choices. Most people chose to continue working because they simply could not afford to stop. Sure, the government gained £4.9 billion a year from that change - an increase equal to a quarter of a percent of GDP, but there is a cost attached to that.
Marie Curie estimates 92,000 people die each year before they can claim the pension, rising by thousands with every State Pension Age increase. For people with physically demanding jobs, chronic illness, or caring responsibilities, pushing retirement age higher can feel unfair. Once State Pension Age hits 68, around 15,800 additional deaths per year will occur before pension eligibility.
This isn’t just a statistics question, it’s about dignity, health, and whether our system supports all equally.
Steps you can take to prepare
Boost pension contributions
Think of your pension contributions as a long-term habit. Even a small monthly increase can grow significantly over decades. Many default workplace pensions start at just 8% but consider topping up if you can.
Check your State Pension Age and forecast
Use government tools to confirm your personal State Pension Age and estimate benefits.
Bridge income gaps
If you wish to retire before your State Pension Age, you’ll need other income sources whether it’s private pensions, investments, or savings that can cover the gap.
Review estate and care plans
Work out who will manage your finances if you're unable to, and consider future care needs while timing your pension and inheritance pathways.
Further Resources for Planning Ahead
If you're considering how to prepare financially for a longer working life, these resources may help:
- Gov.uk - Check your State Pension forecast
- MoneyHelper - Retirement Planning Tools
- pmw.co.uk - UK-based firm offering personalised advice on pensions, inheritance, and long‑term financial planning
Final Thoughts: Own Your Retirement Journey
Retirement age may be rising but how you respond is still within your control. Staying informed and making even small financial adjustments early can shape a more secure, purposeful future.
Whether you’re 38 or 58, a flexible plan gives you options. And if you're feeling overwhelmed, getting tailored advice could be the smartest investment you make.
For more expert-backed lifestyle insights, visit Lifestyle Daily - where we help you prepare for today, tomorrow, and beyond.
