New study by the Institute for Fiscal Studies (IFS) has revealed that many older people in the UK who are in their sixties are unaware of the change.
State pension rule change warning issued to millions ‘who are in their sixties’
Starting in 2026, the state pension age will rise from 66 to 67 for anyone born on or after April 1960. However, a study by the Institute for Fiscal Studies (IFS) has revealed that many older people in the UK who are in their sixties are unaware of the change.
Yhe IFS found that 59% of people surveyed had incorrect expectations about when they would receive their state pension. Remarkably, 42% believed they wouldn’t get it until years after they’re actually eligible under Department for Work and Pensions ( DWP ) guidelines.
The IFS experts warned: “Together this means that more than one in five people have knowledge gaps that can lead to them making possibly poor decisions about their savings or when they retire.”
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The researchers added that the findings suggest “people who are potentially less financially secure are more likely to face financial risk because of their lack of understanding.”
The study revealed a significant gap in awareness around pension eligibility. While 12% of respondents expected to receive their state pension earlier than they actually will, another 5% openly admitted they had no idea when they’d qualify.
Altogether, 22% were under the false impression that their pension would arrive sooner than reality.
This lack of clarity could have serious financial consequences. When people approaching retirement aren’t sure when their pension will kick in, they’re more likely to make misinformed decisions about savings, spending, and when to stop working.
They added: “Some of those people may therefore be making these critical decisions based on incorrect assumptions about when they can start claiming the state pension.”
State Pension age is going to be kept under review, which means that it could change again in the future. This depends on different factors, such as changes in life expectancy.
State Pension age is gradually increasing for men and women, and will gradually rise to 67 for those born on or after April 1960.