The current state pension age is 66 for men and women – but state pensioners have been warned money could run out within seven years.
The current state pension age is 66 for men and women – but state pensioners have been warned money could run out within seven years.
A warning has been issued for millions of state pensioners who are aged 73 or over. The current state pension age is 66 for men and women – but state pensioners have been warned money could run out within seven years.
Women in particular are at risk of facing financial hardship just seven years into retirement. According to the Department for Work and Pensions (DWP), women aged 55 to 59 have an average of £81,000 saved for retirement, while men of the same age have around £156,000 a gap of 48 per cent.
Financial firm interactive investor calculated that a woman retiring at 67 with £81,000 in savings and withdrawing £11,000 per year would run out of money by age 73.
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But a man with the average pension pot of £156,000 could continue withdrawing the same amount until around age 84. Camilla Esmund, Senior Manager at interactive investor said: “Women still face multiple and systemic hurdles when it comes to building pension wealth. The pay gap plays a key role here, as do other barriers.”
“They are more likely to work part-time or take time out of the workplace to care for loved ones, leading to a lifetime of lower contributions and the potential for a smaller pension pot in retirement,” Ms Esmund explains.
“Despite having lower pension values, women live for longer on average in retirement, and are often left struggling financially in old age once their pension wealth has dwindled,” Ms Esmund said.
“Encouraging open conversations about financial planning and the importance of supporting each other’s long-term financial goals is a step towards achieving true gender equality,” commented Carina Chambers, pensions technical expert at Moneyfarm.
The government announced the launch of the third review of State Pension age in July 2025. This review will consider whether the rules around pensionable age are appropriate, based on the latest life expectancy data and other evidence.
As set out in the Pensions Act 2014, this review will consider evidence from two reports. It will consider an independent report, led by Dr Suzy Morrissey, on specified factors relevant to the Review of State Pension age.
And it will also consider a report from Government Actuary’s Department (GAD) to examine the latest life expectancy projections data.