The UK\u2019s state pension<\/a> age is set to increase from 66 to 67 between 2026 and 2028. There is a further increase to 68 lined up for 2046 but this is widely expected to be brought forward significantly, with a wider pensions review underway.<\/p>\n However, the annual cost of the state pension is rising and people are living longer \u2013 meaning higher pension bills for longer. The latest report from the Office for Budget Responsibility<\/a> (OBR) suggested the cost could be \u00a3200bn a year by 2073.<\/p>\n The upshot is that either the triple lock needs to go or people need to contribute far more to it during their working lives, with estimates saying the state pension will cost 7.7-8.4 per cent of GDP<\/a> by the 2070s.<\/p>\n Jack Carmichael, a pensions expert and actuary at Barnett Waddingham, warns that can\u2019t be paid for in current terms, and might even be undershooting the reality by then, too. <\/p>\n \u201cA more cautious approach would be to assume a closing of the life expectancy gap between the individuals with the lowest and highest life expectancy. Under this alternative, the annual cost of the state pension would increase by around \u00a38bn a year \u2013 four times higher than the OBR\u2019s central projection,\u201d Mr Carmichael told <\/a>the Telegraph.<\/p>\n \u201cKeeping the cost at a similar proportion of GDP would then require a massive increase in the state pension age, potentially up to the dizzying heights of 80.<\/p>\n \u201cEven if the central projection is correct and state pension spending hits 7.7pc of GDP, the cost is still going to increase by almost half in today\u2019s terms. That\u2019s completely unaffordable. Employees are either going to have to contribute 50pc more to the state pension or [the government<\/a> is] going to have to change the system in some way.\u201d<\/p>\n Other experts have said the pensions system could be bringing in less than it pays out in as little as a decade.<\/p>\n Get a free fractional share worth up to \u00a3100. Terms and conditions apply.<\/p>\n![\"Trading](\"https:\/\/static.independent.co.uk\/static-assets\/images\/mobile-stores\/Trading_212.svg\")
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