An increase in the UK State Pension age could place disproportionate financial pressure on millions of people unable to remain in work, with lower-income households, people in poor health and those without savings among the groups considered most exposed.
The State Pension age began rising from 66 in April 2026 and is due to reach 67 by April 2028. The change is being phased in gradually according to date of birth rather than taking effect across the population on a single day.
The Work and Pensions Committee has warned that the financial consequences will not be distributed evenly, with some groups more likely to face a gap between leaving employment and becoming eligible for the State Pension.
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.”
The committee has identified seven groups as particularly vulnerable: people who have typically worked in lower-income roles; those who have spent periods outside the labour market; people unable to access housing wealth; those living in the most deprived areas; people experiencing poor health or disability; those with caring responsibilities; and people without access to savings.
Wood said the risks could be compounded when several of these factors affect the same household.
“These circumstances frequently overlap. Someone may have worked in a lower-paid or physically demanding job while also having caring responsibilities or experiencing health problems.
“This can make it more difficult to build private pension savings, accumulate other assets or continue working until the new State Pension age.
“People approaching retirement should therefore check their expected State Pension age and forecast rather than assuming they will automatically become eligible when they turn 66.”
The committee said people unable to continue working could be forced to remain reliant on working-age benefits for longer or draw down savings that would otherwise have been available during retirement.
Previous evidence suggests the effects of pension-age changes can be significant. When the State Pension age rose from 65 to 66, the absolute poverty rate among 65-year-olds more than doubled.
Wood said even a relatively short delay could have a material effect on household finances.
“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 substantial savings may need to rely on Universal Credit or other available support until they qualify for their State Pension. Others could be forced to use retirement savings earlier than planned.
“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.”
The transition from 66 to 67 is being introduced incrementally. People born between April 6 1960 and March 5 1961 will reach State Pension age at 66 plus a specified number of months.
For example, someone born on July 31 1960 is expected to reach State Pension age at 66 years and four months.
Wood said individuals should check the precise date that applies to them before making decisions about employment or retirement.
“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.
“People should also check their National Insurance record and State Pension forecast. Reaching State Pension age does not necessarily mean everyone will receive the same amount, as entitlement will depend on an individual’s National Insurance history.”
The Work and Pensions Committee has called on the government to consider increasing Universal Credit payments for 66-year-olds affected by the transition, highlighting concerns that some people could face a period without the income support they had expected.
Under current legislation, the State Pension age is also scheduled to increase from 67 to 68 between 2044 and 2046, although that timetable could be altered by future government reviews.
The debate over the latest increase reflects a wider challenge for policymakers: as the population ages and pension costs rise, successive governments have sought to extend working lives while trying to prevent changes from disproportionately affecting people whose health, employment history or financial resources make working longer difficult.
For households approaching retirement, the immediate priority is to establish the exact date on which State Pension entitlement begins and assess whether existing savings, employment income or benefits are sufficient to bridge any gap.
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