Workers born in these years warned over state pension age increase

Workers born in these years warned over state pension age increase
-Credit: (Image: Reach Publishing Services Limited)


People in their 50s have been warned over the prospect of a state pension age increase. Those born between 1965 and 1974 have been warned state pension age increases has pushed at least 750,000 over 50s into considering or returning to work, it has emerged.

Mark Screeton, CEO of SunLife, warned: "If the state pension age were to rise to 68 by the early 2030s rather than 2044-46 as currently planned, millions could be left struggling with no private pension savings to fall back on."

Screeton added that while some older people can work until 68, many face "real challenges" remaining in the workplace past 50. This could have knock-on effects for families relying on grandparents for childcare support.

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A London School of Economic (LSE) report said: "We already have direct evidence on the effect of raising the pension age upon the wellbeing of all those affected... The answer is an average loss of 0.12 points of wellbeing (out of 10) for a year."

The LSE warned that remaining in employment until 68 could be a "real burden" for many, potentially impacting overall wellbeing and quality of life for older workers. Helen Morrissey, head of retirement analysis at Hargreaves Lansdown said: "The pandemic had a huge impact on over 50s workers, who exited the workplace in droves.

"Whether that be through redundancy or retirement, it not only left employers with an experience gap, it also left many older workers with a hole in their retirement planning. Leaving the workforce early not only means fewer contributions being paid into a pension, it’s also likely that people start drawing that pension earlier, which can put it under strain.

"This latest data shows some stabilisation, with the employment rate for those aged between 50-64 hitting 70.9 per cent. There’s every chance we will see this rate start to nudge upwards again in the coming years, especially as we see further increases in state pension age."