Financial experts have warned about the difficult position that many older Brits face as a new major state pension change gets underway. The State Pension Age (SPA) is gradually increasing to 67 over the next couple of years, and when you can retire will depend on your exact date of birth, as the increase will happen slowly over time. Starting next week, one month will be added to the state pension age every two months.

This will end in April 2028, when the state pension age will be 67 for everyone. In other words, all workers born after April 1960 will start to see their state pension age rise. There will be periods of time when the state pension age is 66 years and one month, 66 years and 11 months, and anywhere in between. The Standard Life Centre for the Future of Retirement has said that over-60s might need additional support amid the changes, when many will be left without a state pension when they didn’t expect to be.

Meanwhile, the Institute for Fiscal Studies has warned that it could increase poverty rates among older Brits. In a recent report, it said: “As only a minority of those affected respond to the reform by working longer, these increases only partially offset the direct loss of income as the SPA is increased.

“Previous research shows that average incomes are markedly lower among affected individuals, as they have to wait longer to receive their state pension. Lower household incomes also lead to an increase in income poverty – as the SPA was increased from 65 to 66, the income poverty rate of the affected age group (65-year-olds) rose from 10% to 24%, with the effects concentrated amongst those who were out of paid work.”

It also urged the government to consider giving people more notice about State Pension Age changes so that they can plan accordingly.

“This would mean that any changes happen before most people have left paid work to retire, and would give people time to adjust their saving and retirement plans,” the report said.

“If the government does want to bring forward the increase in the SPA to 68 to the late 2030s (suggested by the 2017 independent review), it would need to do so promptly to maintain the suggested principle of 10 years’ notice of any change.”

There is a further State Pension Age increase set to happen in the 2040s, when it will eventually reach 68. Meanwhile, experts have warned that the SPA could rise to as high as 80 for younger generations.

Additionally, the Standard Life Centre for the Future of Retirement found that an estimated 250,000 more 60 to 64-year-olds are living in relative income poverty, a higher number than those living in similar conditions in the 2010s.