Under new Government proposals, as many as seven million UK men and women will have to wait a year longer than expected to get their state pension.
This is because the UK’s existing state pension age of 67 will be extended to 68 by 2039 – affecting anyone born between 1970 and 1978, the Government has now confirmed.
This means that anyone aged between 39 and 47 will effectively have to wait a year longer than initially planned for their pension.
According to numerous commentators, those affected by the change are likely to lose out by approximately £8,300 plus inflation each – i.e. the current equivalent to 12 months’ worth of new state pension payments.
Addressing MPs in July, Secretary of State for Work and Pensions David Gauke, said: “As life expectancy continues to rise and the number of people in receipt of state pension increases, we need to ensure that we have a fair and sustainable system that is reflective of modern life and protected for future generations.”
The Government believes that the measure will save taxpayers approximately £74 billion by 2045/46, according to reports.
But the move has been heavily criticised by Debbie Abrahams, Shadow Work and Pensions Secretary.
She said: “This is a disgraceful and unjustified attack on the state pension by this Government, who are asking millions of people to work longer to pay for their failing austerity plans.
“The latest research on life expectancy, published days ago, shows that there is no evidential basis for bringing the state pension age further forward.
A Department for Work and Pensions spokesperson said: “These changes will ensure that the state pension is both fair and sustainable for future generations. Those affected will on average still receive the state pension for longer than the generations before them.
“Under the simplified new state pension at its basic level, people in retirement will receive over £1,250 a year more than compared to April 2010.”