People born in these years have been warned over state pension age increase(Image: Getty)

DWP state pension age warning for anyone born in these years

by · NottinghamshireLive

People in their 50s have been issued a stark warning over a potential hike in the state pension age. Those born between 1965 and 1974 are on alert after increases in the state pension age prompted at least 750,000 over-50s to consider or return to work.

SunLife' s CEO Mark Screeton cautioned: "If the state pension age were to rise to 68 by the early 2030s rather than 2044-46 as currently planned, millions could be left struggling with no private pension savings to fall back on." As reported by BirminghamLive, he also pointed out that although some older people might be able to work until 68, many find substantial "real challenges" in remaining employed post-50.

Worryingly, this could also have implications for families reliant on grandparent-provided childcare. A study from the London School of Economics (LSE) states: "We already have direct evidence on the effect of raising the pension age upon the wellbeing of all those affected... The answer is an average loss of 0.12 points of wellbeing (out of 10) for a year."

The LSE report suggests that being obligated to work until 68 could become a significant strain for many, possibly eroding their quality of life and overall wellbeing. Hargreaves Lansdown's head of retirement analysis, Helen Morrissey, remarked: "The pandemic had a huge impact on over 50s workers, who exited the workplace in droves.

"Whether that be through redundancy or retirement, it not only left employers with an experience gap, it also left many older workers with a hole in their retirement planning. Leaving the workforce early not only means fewer contributions being paid into a pension, it's also likely that people start drawing that pension earlier, which can put it under strain.

"This latest data shows some stabilisation, with the employment rate for those aged between 50 to 64 hitting 70.9 percent. There's every chance we will see this rate start to nudge upwards again in the coming years, especially as we see further increases in state pension age."