Work and Pensions Committee also warned that the effects of the increase are unlikely to be felt equally across the country
Work and Pensions Committee Chair Debbie Abrahams raised concerns over age changes (Image: Parliament TV)
State Pension age change could leave seven groups financially worse off by 2028, an expert warned. The State Pension age began rising from 66 in April 2026 and will reach 67 by April 2028.
The Work and Pensions Committee published its “Transition to State Pension Age” report in July 2026, warning that raising the state pension age from 66 to 67 between 2026 and 2028 risks doubling poverty rates for pre-pensioners.
When the state pension age last reached 60/66, poverty more than doubled from 10% to 24% for the approaching age cohort, pushing 100,000 people below the poverty line. The Committee warns the impact will likely be higher as it moves to 67.
The Work and Pensions Committee also warned that the effects of the increase are unlikely to be felt equally across the country. Andy Wood, a tax expert at Tax Barrister UK, said: “The increase means that affected individuals will have to wait longer before becoming eligible for their State Pension.
“For those who are healthy, in secure employment and able to continue working, that additional wait may be manageable. However, it could create a serious financial gap for people who cannot remain in work and do not have sufficient savings or other assets to support themselves.”
According to the Work and Pensions Committee, the groups considered particularly vulnerable are:
- People who have typically worked in lower-income roles
- Those who have spent periods outside the labour market
- People unable to access housing wealth
- Those living in the most deprived areas
- People experiencing poor health or disability
- Those with caring responsibilities
- People without access to savings
Mr Wood said: ”These circumstances frequently overlap. Someone may have worked in a lower-paid or physically demanding job while also having caring responsibilities or experiencing health problems.
“This can make it more difficult to build private pension savings, accumulate other assets or continue working until the new State Pension age.
“People approaching retirement should therefore check their expected State Pension age and forecast rather than assuming they will automatically become eligible when they turn 66.”
Work and Pensions Committee Chair Debbie Abrahams said: “Many—but not all—know, the state pension age has started to rise from 66 as of April this year, and will reach 67 by April 2028.”
“It is clear that disadvantage, ill health and frailty are not spread evenly across the country; they are concentrated in some communities more than others, and they go hand in hand with poverty.”
The Committee said many people reach their early 60s in poor health and unable to work, after years in low-paid and Toggle showing location of often physically demanding work. One of the explanations for the rise has also been better health in later life, but Ms Abrahams said that life expectancy is in fact going down: “As the Health Foundation’s recent report shows, since 2012 the healthy life expectancy—the average age someone is expected to live in good health—has fallen by two years, to 60.7 years for men and 60.9 years for women. Again, that is an average; in areas such as mine, a former industrial area, the healthy life expectancy for men and women is 56 and 58 years, so we can see the difficulties that the country is facing with this issue. Of course, different cohorts will have different healthy life expectancies as well.”
Previous evidence indicates that when the State Pension age increased from 65 to 66, the absolute poverty rate among 65-year-olds more than doubled.
Mr Wood added: “A delay of several months may sound relatively small, but it could represent a considerable loss of expected income for someone who has already left work.
“Those without substantial savings may need to rely on Universal Credit or other available support until they qualify for their State Pension. Others could be forced to use retirement savings earlier than planned.
“The change may be particularly difficult for people in physically demanding roles or those with medical conditions that limit the type or amount of work they can undertake.”
The transition from 66 to 67 is being introduced gradually rather than taking effect on a single date.
People born between 6 April 1960 and 5 March 1961 will reach State Pension age at 66 plus a specified number of months. For example, someone born on 31 July 1960 is expected to reach State Pension age at 66 years and four months.