A major overhaul of Britain’s state pension arrangements is approaching, with experts warning that many people may not be ready for the financial implications.

From April 6th, the state pension age will rise again to 67, affecting those in their mid-sixties who will need to wait considerably longer before receiving their payments.

The warning comes from the Centre for Ageing Better, which suggests this change could push thousands into immediate financial difficulty.

The charity estimates roughly 100,000 people could fall into poverty as a result of this adjustment.

Elaine Smith, who leads on Employment and Skills at the Centre for Ageing Better, explained that while raising the state pension age brings significant financial benefits for the Treasury, it also creates real practical problems for those in their sixties.

She added that when the state pension age was increased before, poverty among 65-year-olds doubled. This forthcoming rise is anticipated to have even more significant effects.

According to the organisation, many people in their early-to-mid sixties already rely on the state pension as a financial support system, and delayed access could leave them unable to cover essential costs.

Why this change may affect people more severely than expected

The increase forms part of long-term government plans to account for greater life expectancy.

However, experts point out that the actual situation has shifted.

Smith noted that life expectancy is now lower than before the pandemic, and healthy life expectancy has fallen to its lowest level in several years.

She highlighted that many people simply cannot continue working into their late sixties due to health problems, caregiving responsibilities, age-based discrimination, and job availability.

Remaining in work until reaching state pension age is not the norm, she observed. By age 66, fewer than one-third of people are still employed.

Calls for immediate financial support

The Centre for Ageing Better is urging the government to provide targeted assistance for those affected.

Smith said people are being asked to work longer before accessing their state pension, yet without any additional government help to make this possible.

Proposals include earlier access to Pension Credit, further support through Universal Credit, and greater investment to help those over 50 stay in work.

The organisation argues that even a small fraction of the expected £10 billion in savings from raising the pension age could prove transformative.

Growing inequality concerns

Experts warn the change will not affect all groups equally.

Those most at risk include single people, renters, households with lower incomes, and individuals with health conditions.

Smith stated that state pension age increases widen existing inequality. Those already outside the workforce are least likely to benefit and most likely to face hardship.