The National Association of Pension Funds is warning that women in their 50s will be hardest hit by the rise in the state pension age to 66 in 2020.
Chancellor George Osborne revealed plans last week in the Government’s review to fastforward the increase in the retirement age.
Osborne said the state pension age for men and women will be equalised at 65 from 2018 onwards, with the threshold due to increase by another year between December 2018 and April 2020.
NAPF chief executive Joanne Segars says the accelerated reforms will be felt most keenly by women close to the current state pension age of 60. She says: “Increases in the state pension age are inevitable but they must be handled fairly. People need time to plan and adapt.
“These changes will have a particular impact on women, especially those women in their late 50s, who may have to review their retirement plans.”
Figures released by the Treasury reveal the reforms would affect around 5.1 million people, with savings expected to reach £30bn between 2015 and 2025 as a result of lower spending on state pensions and pensioner benefits.
The Treasury also estimates a further £13bn will be raised through increased income tax receipts and National Insurance contributions.The Department for Work and Pensions will shortly publish further details and a full impact assessment.
The Government will also bring forward further proposals for future increases to the state pension age “to help manage the ongoing challenges posed by increasing longevity”.
Responses to the DWP’s June consultation on the issue indicate it could be necessary to increase the state pension age to 70 by the mid-2030s.