Inquiry launched on pre-pension income gap support

A cross-party committee of MPs has launched an inquiry into the pre-pension income gap ahead of the impending State Pension age increase to 67.

60-64 year-olds are the joint poorest age group among working-age adults aged 25 and over, as some people leave work early to care for partners or on health grounds despite long careers but are not old enough to take their State Pension. In 2023/24, 22% of them (876,000 people), were living in poverty.

From April, the Government will phase in a State Pension age increase from 66 to 67 to be complete within two years. The last time the pension age went up from 65 to 66 it led to 100,000 more 65-year-olds in absolute income poverty compared to before.

The new Work and Pensions Committee inquiry will examine the reasons for premature retirement, inequality, the impact on pre-pensioner and pensioner poverty of upping the State Pension age and what support to smooth the transition could look like.

It comes alongside publication of the Government's response to the Committee's report on Pensioner Poverty. In it, the Government did not commit to an ageing society strategy as recommended by the Committee. Asked to produce an impact assessment for the incoming State Pension age increase, it pointed to the most recent being published in 2013.

Committee Chair Debbie Abrahams said, “In our Pensioner Poverty report we called on the Government to create a coherent cross-governmental strategy that would get ahead of the consequences of an ageing society. Its response pointed to a lot of – not unwelcome – standalone policies, but nothing that amounted to a guiding star for all departments for the health of the country as it edges towards retirement. It potentially leaves people exposed to falling between the cracks.

“Pre-pensioners are particularly exposed. You could've worked a grueling 45 years as a skilled tradesperson paying taxes only to find yourself short of cash as you limp from day-to-day for more years until the pension payoff.  It's only natural that this situation would make you feel a sense of injustice facing hardship having been independent and contributing for decades. 

“We do not yet know the impact of the State Pension age increase on these people. The Government's last impact assessment on pushing the retirement age to 67 was in 2013, before the damage caused by Covid to the economy and to people's health.

“We will be investigating the scale of the need to smooth over this transition period and how it can be done.”

In July, the Government has launched a State Pension age Review with the aim of examining the framework for future State Pension age increases. It has not been asked to review the impending pension age change. 

Inquiry Terms of Reference

To give evidence to the Committee's inquiry, please answer any or all of the following questions on the inquiry webpage by 16:00 on 19 December 2025.

Characteristics of the cohort

• Are there particular characteristics of the 60 to 66 age group to take account of in assessing how policies support the transition to pension age? For example:
• Labour market inactivity rates and the main factors contributing to this (including individual factors such as disability, ill-health, caring responsibilities; and labour market factors such as the experience of age discrimination, support for people with health challenges to remain in work and the availability of flexible working opportunities)
• Poverty rates and whether specific groups are disproportionately at risk
• Extent of private pension and other savings

Policy context

• Are there particular policy changes – for example, in relation to private pensions saving or social security and state pension benefits – that have impacted on people aged 60 to 66 (in terms of either supporting their transition to SPa or making it more challenging)?
• What are the industry sector changes that have impacted or may impact on people aged 60 to 66?
• What should the Mayfield Review taskforce prioritise in order to support labour market participation of this age group?

Awareness of State Pension age increase

• How effectively has the Government communicated the forthcoming State Pension age increase from 66 to 67 to those directly affected?
• To what extent do people aged 60 to 66 take up the support available already available to them?

Impact assessment

• Does DWP have adequate arrangements in place to assess the impact of State Pension age increases?
• What do we know about the expected impact of the increase in the State Pension age from 66 to 67, for example, by income decile and protected characteristic?
• What do we know about the likely impact on pensioner poverty as those currently aged 60 to 66 become pensioners?

Mitigations

• To what extent is there a case for mitigations for people affected by increases in their State Pension age?
• What form, if any, should this take – for example, early access to the State Pension (perhaps for specific groups), the means-tested benefits system, employment support programmes or labour market policies?
• From what age should any additional targeted support apply?
• What would be the costs and benefits of any proposed measures?

ENDS

Notes to editors

• Households Below Average Income figures via Stat-Xplore show that in 2023/24, the relative poverty rate for people aged 60 to 64 after housing costs was 22% (876,000 people). Before housing costs, the relative poverty rate for people aged 60 to 64 was 20% (800,000 people), which was above average and above the rates for adults aged 16 to 59. Relative poverty is below 60% of median income.
• In 2022, the Institute for Fiscal Studies estimated that the increase in the State Pension age from 65 to 66 meant that 65-year-olds missed out on £142 pw on average of State Pension income, meaning the absolute poverty rate for 65-year olds rose by 14 percentage points, or nearly 100,000 people. Absolute poverty is where someone's household income is below 60% of median income in 2010/11, adjusted for inflation.
• The Government's response to the Work and Pensions Committee's report on Pensioner Poverty can be found on the Committee's website.