Britons planning to retire early have been warned they could take a bigger than expected hit to their pensions and savings.
The rising state pension age means those who want to retire earlier in life will have to find more funds to cover the time before they can claim their state pension.
Stephen Lowe, group communications director at retirement specialist Just Group, warned: “People who leave the workforce before they reach state pension age may make a bigger than expected dent in their pension or other savings, potentially harming their standard of living later in retirement.”
He also said many older Britons are no longer able to retire early as the soaring cost of living is forcing them to continue working to make ends meet.
Labour market figures show 35,000 more Britons aged over 65 are working compared to this time last year, with the state pension age currently at 66 for both men and women.
People hoping to retire over the next few years may want to check their state pension age, as this is gradually increasing to 67 between 2026 and 2028.
Legislation is also in place for the state pension age to increase in stages to 68 between 2044 and 2046.
Some analysts were expecting the Government to announce changes to the timetable for the increase to 68 earlier this year, but ministers have put off any decision until after the next General Election.
Those who start to claim their state pension now will get the new state pension, with the full amount currently at £203.85 a week, or £10,600 a year. The full basic state pension is currently £156.20 a week.
Individuals planning to retire or claim their state pension soon may also want to check if they can increase their state pension payments.
A person may be able to boost their payments by covering any gaps in their National Insurance (NI) record.
An individual typically needs 35 years of NI contributions to get the full new state pension and 30 years of contributions to get the full basic state pension.
A person may have gaps in their record because they were working abroad or were not earning enough to pay NI contributions.
Britons can find out how much state pension they are on track to receive using the state pension forecast tool on the Government website.
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