\n\t\t\t\t\tAnalysis shows some could lose a year of state pension – nearly \u00a312,000 – if the rise is brought forward to 2039-41\t\t\t\t\t <\/p>\n
Millions of workers could face a longer wait before receiving their state pension<\/a>, but those currently aged 51 to 53 are likely to be affected the most if the Government brings forward a planned rise in the retirement <\/a>age.<\/p>\n New analysis by wealth manager Rathbones found that if the change happens between 2039 and 2041, people born between April 1971 and April 1974 would miss out on a full year of payments \u2013 worth just under \u00a312,000 at today\u2019s rates.<\/p>\n The pension age<\/a> is already set to rise from 66 to 67 between 2026 and 2028. Under current legislation, a further rise to 68 is due between 2044 and 2046.<\/p>\n However, both the Cridland Review and a Department for Work and Pensions (DWP) <\/a>report under the previous government recommended accelerating this timeline. Labour has now launched a fresh review, as required by law every six years.<\/p>\n We spoke to the experts to find out how likely a change is, why those in their early fifties are most exposed, and what workers can do to reduce the financial impact.<\/p>\n How soon could the change happen?<\/p>\n While the next planned increase to age 67 is locked in, it is the next rise \u2013 from 67 to 68 \u2013 that is still under review.<\/p>\n Previous reports recommended that this step be brought forward to between 2037-39 or 2039-41, up to five years earlier than currently legislated.<\/p>\n Steve Webb, former pensions minister and partner at consultants LCP, said: \u201cThe big debate of relevance to older workers is when the move to 68 will happen. Both of the reviews undertaken to-date propose to bring that forward.\u201d<\/p>\n Tom Selby, director of public policy at AJ Bell, said any final decision could be delayed until after the next general election due to the political sensitivity of the issue.<\/p>\n \u201cWe obviously don\u2019t know at this stage what the state pension age review will conclude or whether the Government will countenance accelerating the rise to age 68 and possibly beyond.\u201d<\/p>\n But he warned the financial pressure on the system<\/a> is intensifying. \u201cState pension costs, which are already fast approaching \u00a3150bn a year, will continue to balloon without change.<\/p>\n \u201cThe most obvious measures available are to scrap the triple lock <\/a>or increase the state pension age further and faster \u2013 or both.\u201d<\/p>\n Why will 51-53-year-olds be hit the hardest?<\/p>\n If the increase is moved to start in 2039 or earlier, workers born from April 1973 onward would fall into the new bracket \u2013 missing out on a full year of state pension payments.<\/p>\n Webb put the potential loss at \u201cjust under \u00a312,000 at current pension rates\u201d.<\/p>\n This group is in a particularly difficult position as they are too young to benefit from existing protections, but too close to retirement to easily change course.<\/p>\n Many may have been planning for retirement at 67, only to find themselves working another year, or more.<\/p>\n Jordan Clark, financial planner at Quilter, said: \u201cThere is every chance that the state pension age does rise from 68. For many this will mean the prospect of working longer than they may have envisaged.\u201d<\/p>\n He said aligning the pension age more closely with life expectancy<\/a> is increasingly being discussed, especially as the triple lock remains politically difficult to touch.<\/p>\n What can you do to soften the blow?<\/p>\n While changes to the state pension are beyond individual control, experts say there are practical ways to prepare.<\/p>\n Webb advised starting by checking your state pension age and planning for the possibility of having to work longer.<\/p>\n He said: \u201cThink about your options if you had to work one or more extra years.<\/p>\n \u201cDo you have enough private pension savings<\/a> to act as a \u2018bridge\u2019 between when you\u2019d like to retire and when your state pension starts? Could you retrain for a job that\u2019s doable into your late sixties?\u201d<\/p>\n Any change will mean private savings will also become increasingly important. Clark said: \u201cYou should not be relying on the state pension as your sole retirement provision.<\/p>\n \u201cBuilding up a personal pension pot, whether through your workplace or privately, will be crucial.\u201d<\/p>\n He encouraged contributing more than the minimum and regularly reviewing your investment <\/a>mix, adding: \u201cEven in your fifties, you should have a considerable portion invested in equities to avoid de-risking too early and help your pot last longer.\u201d<\/p>\n Selby echoed that view: \u201cThe more you can save <\/a>at a younger age, the easier it will be to build a pension that supports you later in life, even if the state provides less.\u201d<\/p>\n