Millions of people are facing a longer wait for their State Pension, but some could be hit much harder than others.
The State Pension age is rising from 66 to 67, with the change being phased in between April 2026 and April 2028.
For someone who is healthy and able to remain in work, waiting longer may be manageable.
But for others, those extra months could create a serious financial gap, particularly if they have little savings and are unable to continue working.
A tax expert has warned that seven groups could be particularly vulnerable as the new State Pension age takes effect.
The Work and Pensions Committee has previously warned that the impact of the increase is 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.”
Seven groups could face the biggest squeeze
The groups identified as particularly vulnerable include:
- 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
These circumstances can overlap, potentially leaving some people facing several financial pressures at once.
Someone who has spent years in a physically demanding, lower-paid job, for example, may also have caring responsibilities or health problems that make it difficult to work until their new State Pension age.
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.”
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You may have to wait longer than expected
The rise from 66 to 67 is not happening overnight.
It is being introduced gradually, meaning the exact date someone becomes eligible depends on their date of birth.
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.
This means people approaching retirement should not simply assume that turning 66 means their State Pension will start.
Wood said: “The exact date on which someone becomes eligible will depend on their date of birth. It is important to check this directly through the Government’s State Pension age service, particularly when making retirement or employment plans.
“People should also check their National Insurance record and State Pension forecast. Reaching State Pension age does not necessarily mean everyone will receive the same amount, as entitlement will depend on an individual’s National Insurance history.”
Why the change could cause financial hardship
For someone unable to continue working, the wait for their State Pension could mean relying on other sources of income for longer.
That could include working-age benefits or savings that had originally been earmarked for retirement.
The Work and Pensions Committee has highlighted concerns about the potential impact on people who cannot remain in employment until their State Pension age.
Previous evidence also indicated that when the State Pension age increased from 65 to 66, the absolute poverty rate among 65-year-olds more than doubled.
Wood said: “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 committee has called on the Government to consider increasing Universal Credit payments for 66-year-olds affected by the transition.
State Pension age is also due to rise again
The changes do not stop at 67.
Under current legislation, the State Pension age is due to rise again from 67 to 68 between 2044 and 2046.
However, that timetable could still change following future Government reviews.
For anyone approaching retirement, the key point is that their State Pension age is determined by their date of birth, rather than simply reaching their 66th birthday.
Checking the Government's State Pension age service, National Insurance record and State Pension forecast could help people understand when they are likely to qualify and how much they may receive.
For those unable to continue working and without significant savings, knowing the date in advance could be particularly important when planning how to bridge the gap before State Pension payments begin.
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