Why the Labour government could reform the State Pension and what it means for you

Almost half of Brits doubt the State Pension will exist by the time they retire, according to a PensionsAge report published in July 2025. While scrapping the State Pension may not be on the cards yet, there are suggestions that significant changes, which may affect your retirement, could be introduced.

In 2025/26, the full new State Pension is £230.25 a week and can be claimed from age 66. Even though the State Pension may not be enough to cover all your retirement expenses, it often provides a reliable base income. So, changes could affect your long-term financial security.

Spending on the State Pension is estimated to reach 7.7% of GDP by the 2070s

The State Pension is the second-largest item on the government budget after health, and the cost of maintaining it has soared.

According to a July 2025 report from the