State pension outrage as ‘totally unfair’ change to cost savers thousands ? | Personal Finance | Finance

Workers have called for an end to “totally unfair” state pension changes that could see some £18,000 worse off in retirement. A petition has been launched to prevent the state pension age from being increased sooner than planned in the pension review, highlighting that workers have prepared their finances for retirement during their entire working lives.

According to calculations by wealth managers Rathbones, workers aged 51-53 could lose up to £17,774 in payments if the State Pension age rise to 68 is brought forward. The petition by Steven Hillyer read: “Leave the state pension qualifying age as it stands at 67, for those born prior to 1977, and have planned their retirement accordingly.”

It added: “We think it is already far enough off and many people simply cannot work longer. We think they have paid in their dues and it is totally unfair to move their entitlement further away at a late stage in their lives.”

The state pension age is currently 66, but it is set to rise to 67 by 2028 and to 68 by 2046. However, Rachel Reeves has previously suggested that the Government could consider bringing this change forward to rein in public spending, the Daily Record reports.

After the pension review was announced, she said to reporters in London: “As life expectancy increases it is right to look at the state pension age to ensure that the state pension is sustainable and affordable for generations to come.”

If the deadline were pushed to 2039-2041, Rathbones estimated that workers aged 51-53 now would stand to lose £17,774. Those aged 52 would lose £16,918 and workers aged 51 could lose £17,340.

Rebecca Williams, divisional lead of financial planning at Rathbones, said: “With longevity increasing and population pressures mounting, future generations appear set to face a less generous state pension regime than that enjoyed by many of today’s retirees. The situation appears particularly precarious for those in their early 50s who face a real prospect of missing out.”

At 10,000 signatures, the Government will have to respond to Hillyer’s petition, and at 100,000, it would have to be debated in Parliament. You can read the full petition here.