Pensions expert says it's 'bad news' for millions who will 'wait longer' to retire

A pensions expert has delivered a blow to millions who will likely have to “wait longer for their State Pension“.

It comes as payments from the Department for Work and Pensions to older people claiming the full State Pension rose by 8.5 per cent to £221 per week earlier this month.

According to consumer publication Which?, the number of individuals reaching pension age is set to skyrocket due to more people living longer and healthier lives.

At present, the taxpayer forks out £124 billion on the State Pension annually, a figure that’s predicted to rise to over six per cent of all spending by 2050 – when the British pensioner population is expected to surge by 25 per cent to 16 million.

Paul Davies, a pensions writer, revealed on the Which? Money podcast: “So the State Pension age at the moment is 66. The bad news for you and for me is that it’s going up and it might go up even more rapidly in future.”

The age at which one can start claiming State Pension is scheduled to increase to 67 between 2026 and 2028, with another hike to 68 planned for between 2044 and 2046.

However, due to an ageing population, younger and middle-aged workers are likely to face a longer wait before they can kick back and enjoy their retirement, reports the Manchester Evening News.

Davies further added: “But the likelihood is that that will be brought forward. And the state pension age of 68 will happen in probably 10 years.”

“What happens after that is anyone’s guess. But I can’t see it being brought back down again. So people are going to have to wait longer for their state pension for longer.”

The average life expectancy in the UK has increased, with men now living up to 78 years and women up to 82 years. As the State Pension age rises each year, workers are likely to spend fewer of these years reaping the benefits of their hard work.

Davies explained: “Initially it was to do with life expectancy so it was set at 65 when, when life expectancy was around 85, in that people would have about 20 years to claim their state pension. And then as life expectancy went up, so did the State Pension age.”

“It is also cheaper for the government You know it’s a huge cost to fund the state pensions. And making people wait a few years meant that the government could defer some costs.”