The Investing and Saving Alliance (TISA) has expressed concern that raising the State Pension Age (SPA) risks leaving millions of future retirees financially exposed in later life.
Responding to the third SPA review, TISA has urged policymakers to take a holistic view of retirement income, highlighting that while life expectancy is a key consideration, it shouldn’t be the sole driver of policy.
It believes an approach which aims for all current and future generations to receive a state pension for a broadly similar proportion of their adult life is one way in which equitable outcomes can be measured.
However, the Alliance recognises this is an “extremely complicated” area with many facets including UK economic capability, adjustment mechanisms, tax policy, and immigration policy.
Raising the SPA will result in changes to retirement plans which are often planned years in advance. Therefore, TISA has recommended including a minimum 12-year lead time for any changes made to the SPA, alongside early access options and stronger auto enrolment measures.
The government is required to regularly review SPA under the Pensions Act 2014. It announced the third review of SPA in July 2025, considering whether the rules around pensionable age are appropriate.
Renny Biggins, head of retirement at TISA, said: “Raising the SPA while simultaneously scaling back tax incentives for private pension saving risks creating a double whammy for future retirees.
“Without sufficient time and support to plan, many individuals — particularly those in lower-income households or with shorter life expectancies — could find themselves financially exposed.”
TISA has also called for a more nuanced approach to linking SPA to life expectancy, warning that current projections are outdated and that any automatic adjustment mechanisms need to be designed to account for unprecedented events.
Furthermore, the Alliance highlighted the need to consider not only how raising the SPA impacts future retires but also existing retirees with advancements in AI and medicine conceivably increasing life expectancy in the near future.
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Biggins added: “The state pension is a cornerstone of retirement income for millions, and we welcome the government’s intention to ensure its long-term sustainability. But any changes must be part of a joined-up strategy that considers private pensions, health inequalities, and the broader economic landscape.
“TISA stands ready to work with government and industry to ensure that future reforms are fair, sustainable, and support better retirement outcomes for all.”
