In 2028, the minimum age at which workers can access their pension savings will rise from 55 to 57. And, if this is worrying you, you are not alone. More than six in ten 50-year-old workers (63%) are concerned about this increase, according to new research from TPT Retirement Solutions.

The research also found that:

• a fifth (21%) planned to access their pension savings before they turned 60;
• only 35% of workers aged between 50 to 59 are aware of the current minimum pensions age;
• three in four (76%) workers in their 50s are worried about any potential State Pension Age (SPA) rises in the 2030s.

While there has been some fairly frenetic discussion in the media about the suggested acceleration in raising the SPA ahead of the current timeline, the Government has elected to not tinker with this, delaying any decision until after the next General Election… or leaving it to other parties should they not win a majority.

The recent Institute of Fiscal Studies report on the funding of the state pension made it crystal clear that the authors did not think the current trajectory was affordable, especially should the triple lock stay in place.

Under current plans, the state pension age will rise to 67 in a phased introduction between 2026 and 2028, and then to 68 between 2044 and 2046.

Changes to State Pension Age

Only 15% of workers in their 50s are currently planning to retire at the age of 68 or older, while more than seven in ten (73%) are planning to retire before they reach 68. However, these plans may potentially be disrupted if the SPA does increase, as 74% 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%) 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%) 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%) are also worried about the increase in the pension age due to their health, life expectancy, or family circumstances.

David Lane, Chief Executive of TPT Retirement Solutions, comments: “As the national minimum pension age increases, it is important for people to be aware of how this change may impact their retirement plans. 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.”

Are your retirement plans on track?

If you are on the road to retirement and wondering when (or even if!) you can afford to retire, and how much you will be able to spend each year without your funds running out, you might like to test out the “RetireEasy LifePlan”, available here: www.retireeasy.co.uk

It takes just a few minutes to securely enter your data, and then you can run scenarios on what would happen to your plans if you changed your retirement date, took on a part-time job, decided to travel the world or help out a family member – all in the form of easy-to-understand charts. It costs just a few pounds a month, and you can cancel at any time.