A stark warning has been issued to hundreds of thousands of people over the age of 60, as a major change to the state pension threatens to leave many financially vulnerable and "falling between the cracks".
MPs Launch Inquiry into 'Pre-Pensioner' Poverty
A cross-party group of MPs has initiated an urgent inquiry into the income gap confronting individuals on the cusp of retirement. This move comes directly ahead of the government's planned increase in the state pension age, which is set to rise from 66 to 67 starting in April next year. The phased change is expected to be completed within two years.
The inquiry highlights a critical issue: those aged between 60 and 64 are now among the poorest of all working-age adults in the UK. Disturbing figures from 2023/24 reveal that approximately 22 per cent of people in this age bracket, equating to roughly 876,000 individuals, were living in poverty.
The Looming Impact of the Pension Age Increase
Committee Chair Debbie Abrahams voiced significant concerns, stating the government's current approach lacks a coherent strategy. "Its response pointed to a lot of – not unwelcome – standalone policies, but nothing that amounted to a guiding star for all departments for the health of the country as it edges towards retirement," she said. "It potentially leaves people exposed to falling between the cracks."
The situation is particularly acute for so-called "pre-pensioners" – those who have worked for decades but now face a prolonged wait for their state pension. Ms. Abrahams painted a vivid picture of the injustice, noting someone could have worked a gruelling 45-year career, paying taxes throughout, only to find themselves short of cash and struggling day-to-day for several more years before their pension begins.
An Outdated Assessment and an Uncertain Future
A key concern raised by the MPs is the lack of contemporary analysis on the impact of raising the retirement age. The government's last official impact assessment on moving the pension age to 67 was conducted back in 2013, long before the profound economic and health damage inflicted by the Covid-19 pandemic.
"We do not yet know the impact of the State Pension age increase on these people," the committee acknowledged. The inquiry will now focus on investigating the true scale of support needed to smooth this difficult transition period and explore practical ways to deliver it, aiming to prevent a generation from slipping into hardship after a lifetime of contribution.
