State pension age warning as seven groups most at risk from rise - full list

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A major change to the State Pension age could place additional financial pressure on millions of people

Millions of people could face extra financial pressure as the State Pension age rises, with some groups expected to be hit much harder than others.

The State Pension age has been gradually increasing from 66 since April 2026 and will reach 67 by April 2028.

The Work and Pensions Committee has warned that not everyone will be affected in the same way.

For people who are healthy and able to stay in secure work, waiting longer for their State Pension may be manageable.

But those who cannot continue working or do not have enough savings could be left with a difficult gap in their finances.

Andy Wood, a tax expert at Tax Barrister UK, said: "The increase means that affected individuals will have to wait longer before becoming eligible for their State Pension.

"For those who are healthy, in secure employment and able to continue working, that additional wait may be manageable.

"However, it could create a serious financial gap for people who cannot remain in work and do not have sufficient savings or other assets to support themselves."

According to the Work and Pensions Committee, the groups considered particularly vulnerable are:

Mr Wood warned that many people could fall into several of these groups at the same time.

For example, someone may have spent years in a low-paid or physically demanding job while also dealing with health problems or caring for someone else, potentially making it much harder for them to keep working until they qualify for their State Pension.

"These circumstances frequently overlap," he said. "Someone may have worked in a lower-paid or physically demanding job while also having caring responsibilities or experiencing health problems."

That combination of pressures makes it significantly harder to accumulate private pension savings or build up other assets over a working lifetime. It also reduces the likelihood of being able to stay in employment until the new, higher pension age.

Mr Wood added: "This can make it more difficult to build private pension savings, accumulate other assets or continue working until the new State Pension age."

He urged anyone approaching retirement to verify their expected pension age rather than assuming they will qualify at 66.

There is already evidence that raising the pension age carries serious consequences. When the threshold previously moved from 65 to 66, the absolute poverty rate among 65-year-olds more than doubled.

Mr Wood said: "A delay of several months may sound relatively small, but it could represent a considerable loss of expected income for someone who has already left work."

Those without meaningful savings may be forced to depend on Universal Credit or other forms of support while they wait to qualify. Others risk dipping into retirement funds earlier than intended, eroding the money they had set aside for later life.

"The change may be particularly difficult for people in physically demanding roles or those with medical conditions that limit the type or amount of work they can undertake," Mr Wood added.

The Work and Pensions Committee has urged the Government to consider increasing Universal Credit payments for 66-year-olds caught up in the transition.

The transition is being rolled out gradually rather than switching on a single date. Eligibility depends on when a person was born.

Those with birthdays falling between 6 April 1960 and 5 March 1961 will reach their State Pension age at 66 plus a set number of additional months. As an illustration, someone born on 31 July 1960 would become eligible at 66 years and four months.

Mr Wood said: "The exact date on which someone becomes eligible will depend on their date of birth. It is important to check this directly through the Government's State Pension age service, particularly when making retirement or employment plans."

He also stressed the importance of reviewing National Insurance records and pension forecasts, noting that entitlement varies depending on an individual's contribution history.

Under existing legislation, a further increase from 67 to 68 is scheduled between 2044 and 2046, though future government reviews could alter that timetable.