Fears grow over state pension age shake up

MILLIONS of people saving for retirement could be left worse off in the future if a rise in the state pension age is brought forward, campaigners have warned.

- By Martyn Brown Political Editor

They say life expectancy should not be the only factor when setting future increases.

And they insist any age rises should be announced to savers at least 10 years in advance, to avoid another scandal like the one which affected the Women Against State Pension Inequality.

The warnings come as the Government’s SPA review — a key step in deciding when people will be able to claim in the years ahead = reaches a crucial stage.

Currently the state pension age is 66 for both men and women but it will gradually rise to 67 by 2028.

This could jump further to 68 in the mid-2040s, depending on the outcome of an ongoing review. It is exploring how changes in life expectancy, along with other factors, should be reflected in future.

The Investing and Savings Alliance warned future retirees could be in for a “double whammy” if the age rises while pension tax incentives are cut.