State pension age increases are being floated as experts warn future retirees “are likely to be poorer than” pensioners today.
The International Longevity Centre (ILC) is calling on policymakers to reform the current pensions system ahead of its Retirement Income Summit this week.
One of the questions being asked during this summit will be whether the state pension age needs to be raised sooner than planned.
Experts are highlighting the intergenerational wealth inequality gap between those currently living in retirement and those who do so in the years.
Recent research carried out by ILF found that those under the age of 40 held £7.53 of every £100 of wealth in 2010.
Over the last 10 years, this amount has fallen dramatically to only £3.98 as the wealth gap has widened.
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The state pension age could be raised sooner than expected to reduced the cost on future generations
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In the past decade, the Government has introduced auto-enrolment into pensions which has assisted millions of Britons into saving more money in preparation for life post-work.
However, experts are warning these savings will likely remain inadequate for households across the country.
In recent years, Britons have struggled to save amid the ongoing cost of living crisis which has exacerbated the existing generational pension divide.
Concerns have been raised over the cost of the state pension on the public purse with the Government regularly reviewing the retirement benefit’s age threshold.
As it stands, the state pension age sits at 66 years old but will increase to 67 between May 2026 and March 2028.
Currently, the threshold is expected to increase from 2044 to 68 but many are calling for the state pension age to be raised sooner than this.
David Sinclair, the chief executive of the ILC, outlined what is at stake for pensioners in decades to come.
The retirement explained: “Future generations of retirees are likely to be poorer than retirees today.
“The state pension age is expected to increase, while the cost of living crisis is squeezing savings.
“Poor young people often become poor older people, so we need solutions that can reduce inequalities as well as ensure we can accumulate savings and access good advice all through our lives.”
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Future retirees are expected to be "poorer" than today's pensioners
GETTYGoing into the next General Election, experts are calling for the Conservative-led Government and Labour opposition to outline their plans for the pension system.
Both parties have committed to the triple lock with Shadow Chancellor Rachel Reeves claiming Labour will not raise the state pension age.
Sinclair added: “To make long lives better for all, we must support decent incomes for everyone throughout life, including during retirement.
“The next election must be a turning point for retirement income.
“We need bold ideas and strong leadership if we are to ensure that future generations don’t end up poorer than their parents.”