More than six in 10 workers aged 50 or more (63 per cent) are concerned about the shift in the age at which people can access their pension, according to research by TPT Retirement Solutions.
In 2021, the government passed legislation to increase the minimum pension age from 55 to 57 in 2028.
Many workers aged 50 said they were concerned about the increase, with more than one in five (21 per cent) currently planning to access some of their pension savings before they turn 60.
But despite the legislative changes, only 35 per cent of workers aged between 50 to 59 were aware of the current minimum pensions age.
Half (50 per cent) of these workers believed the minimum age was 60 or older.
David Lane, chief executive of TPT Retirement Solutions, said: “Our research shows the degree of concern many people in their 50s have about increases to the minimum and state pension ages.
“As the national minimum pension age increases, it is important for people to be aware of how this change may impact their retirement plans.
“Any further increases to the state pension age in the coming years will cause further worry for this age group.”
Concern about a state pension increase in the 2030s
TPT’s research also revealed that more than three in four workers (76 per cent) in their 50s were worried about a potential increase to the state pension age in the 2030s.
The state pension age will rise to 67 in a phased introduction between 2026 and 2028, and then to 68 between 2044 and 2046.
The government had accepted the recommendation of an Independent Review, undertaken by John Cridland, that the state pension age increase to 68 should be brought forward to the 2030s.
But in March 2023 the government delayed the decision over whether to bring it forward until the next parliament.
Workers in their 50s were concerned, as only 15 per cent were planning to retire at the age of 68 or older.
More than seven in 10 (73 per cent) were planning to retire before they reach 68.
Yet these plans may potentially be disrupted if the state pension age does increase, as 74 per cent of workers in their 50s state that they will rely on the state pension as a source of income in retirement.
More than half (51 per cent) of those worried about an increase to the state pension age believe they deserve to retire at 66 as they have paid into the system for long enough.
Nearly half (47 per cent) expect they will be forced to work for longer as they can’t afford to retire without the state pension.
More than a third (35 per cent) are also worried about the increase in the pension age due to their health, life expectancy, or family circumstances.
Lane said: “Given the number of people depending on the state pension as their primary source of income, many could be effectively forced to work for longer. Those with physically demanding jobs may find working for an additional two years particularly challenging.
“People in their 50s with a defined contribution pension should consider, where at all possible, increasing their pension contributions if they want to retire earlier or protect themselves against any future changes in the state pension.”
sonia.rach@ft.com
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