State pension age update as major change will hit these savers the hardest

The State Pension age will increase next year with the change expected to hit certain savers harder than others. The age will rise to 67 in stages between April 2026 and April 2028, with a further increase to 68 rumoured between 2044 and 2046.

All those affected by changes to their State Pension age will get a letter from the Department for Work and Pensions (DWP), with women expected to be impacted more than men. One of the main challenges that impacts the capability of women being able to work later in life is their caring responsibilities. This includes looking after their own parents, children and grandchildren. These responsibilities, which disproportionately affect women, can take people away from work at any time, impacting their ability to have a job later in life.

As reported by AOL, data from the DWP shows that over 18% of women can't work due to caring duties in comparison to 7.7% of men. As well as not being able to work in later life, the issue may also shorten the career of women which gives them less time to build up a workplace pension.

Poor health can also impact a person's ability to keep working. According to DWP, 44.7% of people who are classed as economically inactive between the age of 50-64 say it's because they are sick, injured or disabled.

Under the new rules, people born between March 6, 1961, and April 5, 1977, will be eligible to claim the State Pension once they turn 67. Last month, Chancellor Rachel Reeves said a review which could see the age being increased even further is needed to ensure the system is "sustainable and affordable".

She explained: "We have just commissioned a review of pensions adequacy, so whether people are saving enough for retirement, and also the state pension age.

"As life expectancy increases it is right to look at the state pension age to ensure that the state pension is sustainable and affordable for generations to come. That's why we have asked a very experienced set of experts to look at all the evidence."

Financial experts previously warned Brits to be prepared for an increase to the State Pension age. A recent study of 6,000 people by Standard Life found that over half of people are worried they aren't saving enough money for their retirement, while just 15% prioritise their pension savings with 47% feeling their retirement finances are outside their control.

Alex King, Chartered Accountant and founder of Generation Money, urged people to "take control of their pensions" ahead of the move. He added: "The burden will shift towards people to save for retirement more so than they already are."

The government recently dismissed proposals to drop the State Pension age to 60 after an online petition, which was signed by over 18,800 people, was posted on the Petitions Parliament website. The petition also proposed increasing payments to £586 per week.

In a written response to the petition, the Department for Work and Pensions (DWP) said: "The Government is committed to supporting current and future generations of pensioners and giving them the dignity and security they deserve in retirement.

"Our commitment to the Triple Lock through this Parliament will benefit over 12 million pensioners. From the end of this Parliament, spending on the State Pension as a result of our commitment to protect the Triple Lock is forecast to be around £31billion more a year, compared with 2024/25."