The state pension age could potentially soar to 71 much earlier than anticipated, with experts suggesting that certain regional areas may bear the brunt of this change.
Currently, according to legislation, the state pension age is expected to reach 68 between 2044 and 2046. However, experts are now forecasting a significant leap in the age limit for receiving your government-backed pension far sooner than predicted.
Similar legislative changes have occurred in the past, leading some experts to speculate that the state pension age could hit 70 before 2050.
A review of the state pension age is due within two years by the government, and many predict this will expedite the increase to at least 68. However, Age UK‘s charity director Caroline Abrahams has warned of the potentially devastating impact of this rapidly increasing age.
Speaking to the Express, she said: “There are millions of people in their late fifties to mid-sixties who are struggling on a very low income because they are out of work due to ill health, a caring responsibility or unemployment – and the widespread ageism in the jobs market hardly helps.
“Forcing someone in this position to have to wait even longer for their State Pension would be deeply unfair and condemn many to even deeper poverty.
“The approach governments have been taking is to say that the State Pension Age should rise if healthy life expectancy rises – which it has done until the last few years, when the rise has stalled. From this point of view there is no justification for raising the State Pension Age any further at this stage.”
When talking about potential future increases in the state pension age, the expert highlighted Age UK’s position, stating: “they should exempt certain groups”. These groups suggested include those who are unable to work through no fault of their own, individuals who are severely unwell, and carers.
On the other hand, Becky O’Connor from PensionBee pinpointed yet another demographic likely to be disadvantaged by a rising State Pension age, citing a regional disparity. She said: “Healthy life expectancy also varies significantly regionally, so people who live in areas with lower life expectancy would also be the most likely to be short-changed by rises in the State Pension age.”
Concurring with the concerns, she resonated with Caroline’s remarks regarding those most adversely affected by a State Pension age increment to 71 specifically mentioning individuals unable to continue working extra years without a private pension to bridge them to state pension entitlement.
Becky underlined: “Any further changes beyond what is already planned would have to be brought in slowly so if this increase was going to be brought forward, it would need to be announced soon.”
