The state pension age is currently 66, and can rise to 67 and subsequently 68 in future, impacting thousands and thousands of Britons. Currently, a state pension age review is considering the speed at which these increases needs to be implemented, and whether present rules are appropriate.
Nonetheless, Age UK has warned a rising state pension age could spell trouble for some 3.5 million people aged 50 to 64 who’re currently “economically inactive”.
These individuals who’re already out of the workforce could face “devastating consequences” and struggle financially, the charity has warned.
Its recent report entitled ‘Waiting for an age: the actual impact of raising the State Pension age’, showed a lot of these people even have limited savings, putting a stretch on their money.
Evaluation has shown 1.5 million pre-state pension age households have savings of lower than £5,000, with 120,000 having no savings in any respect.
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“That extra 12 months goes to be difficult as I’m a full-time carer for my wife who has Parkinson’s disease.
“In fact, she also expected to get her pension at 60 only to seek out that she had to attend until she is 66 too!”
Age UK has said there’s “no justification” for further rises to the state pension age at present, particularly given rising life expectancy has somewhat petered out in comparison with initial predictions.
The charity states the present healthy life expectancy within the UK is 62.8 years for men and 63.6 years for ladies – which implies many could either work beyond this point, or need to get by on a smaller retirement pot if selecting to depart the workforce early.
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Caroline Abrahams, charity director at Age UK, said a state pension age rise would represent “a kick within the teeth people could well do without”.
She explained: “There isn’t any justification for raising the state pension age for the time being, especially as we all know that the individuals who will lose out probably the most are those unable to work as a consequence of sick health and caring responsibilities, in addition to anyone with few or outdated skills and qualifications who becomes unemployed in mid-life after which finds it unattainable to get one other job, due partially to rampant ageism within the labour market.
“Life is actually difficult for a lot of who’re unable to work, but not yet sufficiently old to receive their state pension.
“With little if anything to fall back on and costs rising it have to be deeply scary and an enormous struggle simply to make ends meet.
“You possibly can understand why many in this case put their heads down and just attempt to get by, and the concept they may need to attend even longer before receiving their state pension is unconscionable and admittedly slightly cruel.”
Age UK states it would love to see higher support for individuals who cannot work to the state pension age, and further opportunities for individuals who can remain in employment.
Britons can expect to listen to the outcomes of the state pension age review by May 7, 2023 at the most recent.
A DWP spokesperson previously told Express.co.uk: “No decision has been taken on changes to the state pension age.
“The Government is required by law to often review the state pension age and the second state pension age review is currently considering, based on a wide selection of evidence including latest life expectancy data and two independent reports, whether the foundations around state pension age remain appropriate.
“The review can be published in early 2023.”