Many Brits are facing longer waits to claim their pensions, as qualifying rules change. A recent report revealed the state pension age change could take place sooner than initially planned, with experts warning the move could hit the most vulnerable hardest.
The UK state pension age is currently rising from 66 to 67 between April 2026 and April 2028. It is then set to reach 68 between 2044 and 2046, but this move could be brought forward to the 2030s. According to a recent report from the Office for Budget Responsibility (OBR), the state pension age could hit 68 by 2039, with critics warning against the move. It comes after a previous independent review, published in 2023, suggested moving the change forward to between 2041 and 2043.
As reported by the Liverpool Echo, Kate Smith, head of pensions at Aegon, offered an update as she hit out at the “incredibly bad idea”.
She said: “Rumours persist that the shift to age 68 will be brought forward to the late 2030s. Accelerating this timeline is an incredibly bad idea that will unfairly shock the system and hit the most vulnerable hardest.
“It should be recognised that increasing the state pension age benefits the wealthiest most, as they tend to live longer, not those necessarily in the most need.”
Ms Smith instead recommends a flexible early access system where people would be able to claim their state pension up to three years early. She believes this less rigid system would be a better fit for the reality of modern life.
She explained: “We need a system that offers realistic choices, that better reflects people’s lives, not a cliff-edge. An early access system could provide a vital financial bridge. Savers could choose to draw their state pension up to three years early at a reduced weekly rate.”
The pension expert added: “This flexibility should be open to everyone, but it is explicitly designed to throw a lifeline to manual labourers, carers, and those battling ill health who physically cannot work until 67 or 68.”
The increase in the state pension age from 66 to 67 is currently being phased in. For those born before April 6, 1960, their state pension age remains 66, while those born between this date and March 5, 1961, have an age of 66 plus a specified number of months.
For example, someone born in July 1960 will reach their state pension age at 66 years and four months. Meanwhile, those born between March 6, 1961, and April 5, 1977, have a state pension age of 67.
The government is legally required to review the state pension age at least once every six years. It helps balance public finances with life expectancy data.
