Household incomes for more than a million women in their early 60s have fallen due to changes to the state pension age.
Research from the Institute for Fiscal Studies (IFS) found that, on average, women aged between 60 and 62 were £32 per week worse off as a result of the delays.
Women in high income homes experienced a 4% drop since the changes were made, but the biggest pinch was felt by those in low income households who were 21% poorer.
The female state pension age has been gradually increasing, to 65 in 2018 and (along with men) 66 in 2020.
When taking other state benefits into account, women in this age group lost £4.2 billion a year on top of their previous state pension entitlements – equating to £74 per week.
Jonathan Cribb, senior research economist at the IFS, said:
“While increasing the state pension age is a coherent response to the public finance challenge posed by rising longevity, it does place a further pressure on household budgets.
“It is important the government communicates the ongoing increases in the state pension age clearly so families can plan for their retirement as well as possible.”
Contact us to discuss your personal finances.