A landmark study has revealed a devastating human cost linked to the rising state pension age, with an estimated 250,000 more people aged 60-64 now living in poverty compared to 2010.
The Steady Climb of the Pension Age
For decades, the system remained stable: the state pension age was set at 65 for men and 60 for women. However, this changed dramatically from 2010 onwards. The age threshold has been increased in most years since then, with a further major change scheduled.
Beginning in April next year, the state pension age will start to rise again, moving gradually from 66 to 67. This transition is expected to be complete by 2028, meaning everyone will need to wait an extra year to receive their state pension.
Research Uncovers a Poverty Crisis
The stark findings come from the Standard Life Centre for the Future of Retirement. Their analysis shows financial hardship among those approaching retirement has surged dramatically over the past 15 years.
Patrick Thomson, Head of Research Analysis and Policy at the Centre, stated: "For the first 60 years of its existence the State Pension age stayed the same. Since 2010 it has been rising in more years than not, and a growing number of people are falling into poverty as they wait."
He highlighted a particularly alarming statistic: the proportion of 65-year-olds in poverty more than doubled when the pension age moved from 65 to 66.
Calls for Fairness and Protective Measures
While public acceptance exists for gradual increases to the pension age, the research stresses that changes must be perceived as fair across generations. The report warns of severe consequences without intervention.
"We know that there is a good chance that 66 year olds will see their rates of poverty double over the next few years unless we take action," Thomson cautioned.
The policy shift is projected to save the Treasury around £10 billion a year. Experts argue that a portion of these savings should be redirected to support those most at risk.
Thomson advocates for clear policies to help people remain in good work for longer and to cushion the blow for those who cannot. "The state pension matters to people, and we need to build public confidence in a fair system for today and for tomorrow," he concluded.
