Six in ten 50-year-old workers say they are worried about the upcoming rise in the minimum pension age, according to a new study.
The Government will increase the minimum age workers will be able to access their pension savings from 55 to 57 in 2028.
While the move has been flagged for some years, 63% of 50-year-old workers say they are concerned about the change, with many ill-prepared.
One in five workers (21%) plan to access their pension savings before they turned 60.
Only 35% of workers aged 50-59 say they were aware of the current minimum pensions age (55).
Workplace pension scheme provider TPT Retirement Solutions, which carried out the research, said its survey of more than 2,000 50-59-year-olds revealed widespread concern about the rise in the minimum age to take pension benefits.
The Government passed legislation in 2021 to increase the minimum pension age from 55 to 57 in 2028.
The research also revealed widespread ignorance about pension ages, with most workers aged 50-59 unaware of the normal minimum pension age. Just 35% of workers in this age group correctly identified that the current minimum pension age is 55. Half (50%) of these workers believed the minimum age was 60 or older.
TPT’s research also revealed that more than three in four workers (76%) in their 50s were worried about any potential increase to the state pension age in the 2030s. Under current plans the Government will increase the state pension age to 67 in stages between 2026 and 2028 and then to 68 between 2044 and 2046.
Among workers in their 50s only 15% are currently planning to retire at the age of 68 or older.
Just over seven in ten (73%) are planning to retire before they reach 68 and 74% of workers in their 50s say that they will rely on the state pension as an important source of income in retirement.
More than half (51%) of those worried about an increase in the state pension age believe they deserve to retire at 66, as “they have paid into the system for long enough.” Nearly half (47%) expect to work for longer as they cannot afford to retire without the state pension.
David Lane, chief executive of TPT Retirement Solutions, said: “Our research shows the degree of concern many people in their 50s have about increases to the minimum and state pension ages.
“Given the number of people depending on the state pension as their primary source of income, many could be effectively forced to work for longer. Those with physically demanding jobs may find working for an additional two years particularly challenging.”
TPT Retirement Solutions was established in 1946. It serves over 2,600 organisations and more than 425,000 members. The business is run as a not-for-profit organisation for the benefit of its members and has assets of £10.3 billion (as at 30 September 2022).
• Results based on a Censuswide Survey, on behalf TPT Retirement Solutions, of 2,009 employed 50-59 year olds. Survey completed between 27 February and 1 March.
