The next rise in the state pension age (SPA) is only a year away.
It will rise from 66 to 67 starting in April 2026, affecting
anyone born after 6 April 1960. New research from IFS finds that
while most people aged 55–65 know their SPA, a significant
minority are unaware or – potentially worse – mistaken about
their SPA.
For the group whose SPA is between 66 and 67, who will reach SPA
between April 2026 and March 2028, 42% know their SPA correctly
within three months. Many (42%) overestimate their SPA. However,
16% (or one in six) of this group either do not know their SPA or
underestimate it – this translates to around 130,000 people. We
find that those with lower levels of wealth are particularly
likely to be mistaken.
This gap in understanding poses risks for people approaching
retirement. In particular, those who subsequently discover that
they must wait longer than they had thought before receiving a
state pension may face a period of unexpectedly low income.
Heidi Karjalainen, Senior Research Economist at the
Institute for Fiscal Studies and author of the briefing,
said:
‘Most people in their 60s are well informed about their state
pension age. However, one in six of those with a state pension
age between 66 and 67 – equivalent to about 130,000 people –
either underestimate or do not know what their state pension age
is. This is especially important as the state pension age rise
from 66 to 67 is imminent: it starts in just a year's time. If
individuals discover that they have to wait longer than they had
thought to claim the state pension, they may regret having
retired or not having saved more. It is important that there are
clear communications from both the government and private pension
providers around increases in the state pension age, to help
people avoid costly surprises and plan more effectively for later
life.'
ENDS
Notes to Editor
How aware are people of next year's state pension age
increase? is an IFS briefing by Heidi Karjalainen.
You can read the
briefing on the IFS website here
