Marvin OnumonuWorkers aged 51 to 53 could lose up to £17,774 if the state pension age rises to 68 a year earlier than planned, according to figures from Rathbones.
The current law says the state pension age will go from 66 to 67 by April 2028 and then to 68 between 2044 and 2046.
The Government is now reviewing whether this increase should happen sooner because of longer life expectancy, rising public spending and a growing population.
Reviews of the state pension age happen every six years; the last review, led by Baroness Neville-Rolfe in 2023, kept to the promise of giving people at least 10 years’ notice before any rise.
If the change is brought forward so people have to wait until 68 between 2039 and 2041, workers aged 51, 52 and 53 could lose a year’s worth of state pension.
That means missing out on £16,436 for those now aged 51, £16,114 for those aged 52 and £15,798 for those aged 53, based on a 2% inflation rate, according to Rathbones.
If the triple lock stays in place, which guarantees at least a 2.5% rise each year, the loss rises to £17,774 for workers aged 51, £17,340 for those aged 52 and £16,918 for those aged 53.
Rebecca Williams, divisional lead of financial planning at Rathbones, said: “With longevity increasing and population pressures mounting, future generations appear set to face a less generous state pension regime than that enjoyed by many of today’s retirees.
“The situation appears particularly precarious for those in their early 50s who face real prospect of missing out.
“We’ve seen a number of people in their late 40s and early 50s come to us seeking greater clarity on their retirement prospects.”
Williams added: “With shifting goalposts in the pension landscape, many are understandably keen to ensure they’re on track to retire comfortably and on their own terms.
“The state pension alone is not enough for a comfortable retirement. Individuals need a broad foundation built on workplace pensions, private savings, and the ongoing support of pension tax relief.
“Cracks are beginning to show in the system, and they must be addressed urgently if we are to maintain faith in the UK’s pension framework and ensure people are equipped not just to survive, but to thrive in later life.”
Charlotte Kennedy, chartered financial planner at Rathbones, said: “With pension arrangements offering a guaranteed income for life going the way of the dodo, the onus is increasingly on individuals to accumulate a nest egg that enables them not just to survive, but to thrive in retirement – with sufficient resources set aside to cover the cost of care.
“We find many people really value a helping hand from an expert to help make sense of their options and build a clear plan for retirement.
“While auto-enrolment has helped many build retirement savings with minimal friction, most savers remain far behind what is needed for a comfortable retirement.”
Kennedy added: “Efforts to bolster pension adequacy are welcome, but it’s important that new measures address the complex barriers preventing people from saving enough.
“The self-employed must not be left out. For business owners, pensions often take a back seat to the demands of growing a business.
“Financial education is also essential. It remains a minor part of the curriculum, typically folded into maths or PSHE. This must change.
“The earlier young people learn how pensions work, the more likely they are to start saving early and feel empowered to make informed financial decisions.”
