SPA increase has doubled poverty rates for over 65s

In addition, AJ Bell’s Selby warned that younger generations need to prepare for a world where the state provides less in pensions. 

“Rising average life expectancy and ballooning state pension costs mean the state pension age is already scheduled to increase to 67 by 2028 and 68 by 2046. Indeed, a previous review recommended accelerating the rise to 68 by seven years – although this has not yet been written into legislation,” he said. 

An independent review of the state pension age is currently ongoing for the DWP, led by Baroness Neville-Rolfe.

A DWP spokesperson said: “We know that older workers, including those approaching state pension age, are a huge asset to our economy while for those who can’t work, we provide a strong welfare safety net, which includes universal credit.

“We also understand that people are struggling with rising prices which is why we have acted to protect millions of the most vulnerable through at least £1,200 of direct payments this year, and there is a wealth of additional financial support available when people reach state pension age, including pension credit – which unlocks an additional £650 cost of living payment for those currently claiming it - and winter fuel payments.”