Work and Pensions Secretary Liz Kendall has initiated the legally required six-yearly review into the state pension age, which is currently 66. The review will consider factors such as life expectancy and is scheduled to conclude by March 2029.

The announcement comes as experts warn that those retiring in 2050 could receive around £800 per year less in private pension income than current retirees. Compounding the issue, the Department for Work and Pensions (DWP) revealed that 45% of working-age adults are not saving into a pension, with the cost of living crisis cited as a major barrier.

To address this “tsunami of pensioner poverty”, Ms Kendall announced the revival of the Pension Commission. First launched in 2002, its original iteration led to the landmark auto-enrolment scheme. The new commission will investigate why nearly half the working population is not saving for retirement and propose solutions. It is expected to deliver its recommendations in 2027.

Speaking in west London, Ms Kendall highlighted severe disparities in pension wealth. Women approaching retirement currently have half the private pension savings of men, and only one in five self-employed people are actively saving into a pension, down from half in the late 1990s. She also noted that high housing and rental costs prevent many young people from saving. “Put simply, unless we act, tomorrow’s pensioners will be poorer than today’s,” she said.

The commission will explore policy changes, such as lowering the age and earnings thresholds for auto-enrolment, to bring more people into the system.

However, Ms Kendall confirmed that the pensions triple lock – which guarantees the state pension rises by the highest of inflation, average earnings, or 2.5% – is “non-negotiable” and will not be part of the review. She also ruled out any increase in pension contributions from either employers or employees during this parliament.

Analysts suggest the state pension age review could recommend bringing forward the planned rise to 68, which is currently scheduled for the mid-2040s, to an earlier date in the late 2030s.