Some workers could lose out on nearly £18,000 in pension payments, according to wealth management analysis.
DWP could make big change to state pension for people born before 1977
A “totally unfair” Department for Work and Pensions (DWP) change could cost savers thousands. Some workers could lose out on nearly £18,000 in pension payments, according to wealth management analysis.
Workers have called for an end to “totally unfair” state pension changes that could see some £18,000 worse off in retirement. Workers aged 51-53 could lose up to £17,774 in payments if the State Pension age rise to 68 is brought forward.
A petition by Steven Hillyer read: “Leave the state pension qualifying age as it stands at 67, for those born prior to 1977, and have planned their retirement accordingly.”
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It added: “We think it is already far enough off and many people simply cannot work longer. We think they have paid in their dues and it is totally unfair to move their entitlement further away at a late stage in their lives.”
Rebecca Williams, divisional lead of financial planning at Rathbones, said: “With longevity increasing and population pressures mounting, future generations appear set to face a less generous state pension regime than that enjoyed by many of today’s retirees.
“The situation appears particularly precarious for those in their early 50s who face a real prospect of missing out.”
The petition ‘Keep the state pension at 67 for those born before 1977’ currently has 800 signatures.
One replied: “As a pensioner I do understand that the government are faced with having to pay state pensions to more people as life expectancy has improved. However there are many at the lower end of the scale who rely entirely on the state pension in old age and the other factor is are employers prepared to employ people to an older age as this tends to, first cost them more and second block promotion prospects for younger staff members.
“To the well off raising the retirement age is not a problem because they usually have their own provision and the state pension is a extra cash so when they get it is financially not quite so important. There is also the fact that many people simply are unable to continue with their work after a certain age. The police and fire service for example where there are huge physical demands.
“In addition if the age is going to be increased at least 15 years notice should be given to people and they should be educated as to how they can provide for themselves if they have to wait longer for their pension.
“The key to me is at what age do those who make these decisions retire themselves. They are all in the public service and perhaps the same rules should apply to them with their in house pensions.
“This might just help to clarify their thinking, Starmer and Reeves included!”