With the state pension due to increase by 8.5 per cent this month, industry experts have urged the government to consider giving more choice around the state pension age and better education on the state pension.

Under the triple lock, the new state pension is set to increase to £11,502, while the basic state pension will reach £8,814 per year, thanks to the 8.5 per cent wage growth recorded in July 2023.

However, Aegon pensions director, Steven Cameron, clarified that while those near or at state pension age will be hoping to see all parties commit to retaining the triple lock in their pre-election manifestos, this would come "at a high cost to those of working age".

"There is now speculation that if a future government commits to retaining the state pension triple lock, and set against likely future rises in life expectancies, further significant increases in state pension age may be needed to keep costs under control," he noted.

Given this, Cameron urged the government to explore giving individuals more choice on what age they can start claiming their state pension rather than offering an “ever-increasing" specific age.

“The higher the state pension age, the more individuals will struggle to stay in work," he explained, warning that "an ever-rising fixed state pension age could become increasingly divisive and out of sync with today’s flexible private pensions world".

He continued: “While individuals can already choose to defer their state pension in return for a higher monthly payment, there’s no flexibility to start it from a younger age.

"We support giving people the choice to draw it up to three years earlier, at a reduced amount to make it financially fair for all. An alternative would be to commit to allowing access from not later than say age 68, at a lower amount, even if the state pension age increases thereafter.

“Some individuals rely heavily on the state pension and opting for an earlier, reduced amount could leave their retirement income below the current threshold for means-tested benefits.

“A more flexible approach to state pension age would not only meet the more varied ways people now live their ‘Second 50’ including when they retire but would also go some way to alleviate the concerns of an ever increasing ‘standard’ state pension age.”

These concerns were shared by Phoenix Insights head of research and policy, Patrick Thomson, who agreed that "simply raising the state pension age doesn’t mean that people will be able to work for longer".

"We need proper support to help make work better for more people, and to support those unable to work to higher ages,” he stated.

“When thinking about the costs of the triple lock and the state pension more broadly, the government needs to consider two important factors: how much people are paid through the state pension and at what age they will receive it.

“Any changes to either of these factors have a huge impact on individuals planning for their retirement, and for our public finances."

And despite the political pressure surrounding the state pension triple lock ahead of the expected general election, research from Phoenix Insights found that understanding of the state pension is very low, including around what the triple lock is and when people can access their state pension.

Indeed, according to the research, over one in five (22 per cent) over 55s don’t know their state pension age, although more than half (51 per cent) of adults expect to work up to at least their state pension age.

Furthermore, 87 per cent of adults believe that the state pension is there to ensure everyone has a minimum level of income in retirement, while the majority of adults (84 per cent) believe that it is an essential role of the government to provide the state pension.

The research also found that half of under 50s think that there probably won’t be a state pension by the time they retire, and just 18 per cent of adults say they could live on the state pension alone in retirement.

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