Labour Urged To Allow Early State Pension Access As Triple Lock Faces Scrutiny

Labour is facing mounting calls to permit individuals to access their state pension up to three years early as the future of the triple lock guarantee comes under the spotlight. Aegon, a major pension provider, has formally urged the government to introduce early state pension access, allowing those nearing retirement the option to take reduced annual payments. This would offer greater flexibility, particularly for people whose health or caring responsibilities make it difficult to work until the official pension age.

The rising cost of the state pension is a growing concern for policymakers. With longevity increasing and the triple lock ensuring annual uplifts in line with inflation, wages, or at least 2.5 percent—whichever is highest—the strain on public finances is intensifying. The Office for Budget Responsibility estimates the triple lock could add £15.5bn to the annual pensions bill by 2030.

Current plans see the state pension age rising from 66 to 67 next year, followed by an eventual increase to 68 by 2046. Regular government reviews of the statutory retirement age, most recently conducted in 2023, are mandated every six years. Dr Suzy Morrissey, deputy director at the Pensions Policy Institute, is leading the latest independent assessment as experts warn that simply raising the state pension age may be unworkable for many.

Steven Cameron of Aegon highlighted that a higher pension age could prove divisive. Many over-50s are already leaving work prematurely due to ill health, physically demanding jobs, or the need to care for elderly relatives. Delaying pension access disproportionately affects those with lower life expectancy, often lower earners, penalising them much more than those likely to enjoy a lengthy retirement.

The triple lock, long under fire as unaffordable, is drawing renewed criticism. Chancellor Rachel Reeves is under pressure to end the guarantee, with critics pointing to the public finance gap and Britain’s demographic changes. Some pension experts, such as Steve Webb, caution that early access to a reduced pension could push more retirees below the poverty line, given that even the full UK state pension trails behind international standards. He argued that early access with reductions could turn into a ‘bad policy’, risking widespread financial hardship among pensioners.

Policymakers remain divided on the best path forward. While the option of early access could offer solutions for many, substantial risks remain if pension income fails to cover basic living costs in old age. With another formal review of retirement age due and the debate around the triple lock intensifying, the future of Britain’s pension system is set for renewed scrutiny in the coming months.