Millions of savers face losing tens of thousands of pounds from their retirement income as the state pension continues to rise, fresh research reveals.
This shortfall amounts to roughly two full years of payments that millions of workers will never receive compared to current retirees.
Those currently aged 25 could miss out on as much as £69,900 over the course of their retirement once the state pension age reaches 68, analysis from wealth management firm Rathbones found.
Those in their mid-forties are also affected, with 45-year-olds potentially forgoing around £42,700 in state pension income under the planned changes.
The state pension age is presently moving from 66 to 67, a transition taking place between April 2026 and April 2028.
A subsequent increase to 68 is set to occur between 2044 and 2046 under existing legislation.
However, these timelines may shift sooner than expected, with an ongoing government review examining whether to accelerate the changes.
The Rathbones calculations are based on the current full state pension of £12,548 annually, with increases applied at 2.5 per cent each year under the triple lock mechanism.
The full new state pension will increase to £241.30 per week | GETTYThis guarantee ensures payments rise by whichever is highest among inflation, average wage growth, or the 2.5 per cent floor.
The financial challenge facing younger savers is stark, according to the analysis.
A 25-year-old hoping to retire comfortably at 65 would need to accumulate approximately £1.68million as a single person, or £1.86million as part of a couple, assuming they receive state pension payments.
Should the state pension disappear entirely, these figures jump dramatically to £2.42million for individuals and £3.35million for couples.
Over 45-year-olds will potentially forego around £42,700 in state pension income under the planned changes.
| GETTYThe modelling uses the widely accepted 4 per cent drawdown rule alongside Pensions UK Retirement Living Standards benchmarks.
By comparison, someone retiring today at 65 requires around £796,000 as a single person or £913,000 as a couple to maintain a comfortable lifestyle.
These estimates exclude potential costs for care, rent or mortgage payments.
Ed Wood, Financial Planning Director at Rathbones, says: "The elephant in the room for younger generations is that they are likely to face a less generous state pension system than many retirees enjoy today, pushing the bar much higher for what they need to save themselves."
The Institute for Fiscal Studies has warned the triple lock could cost up to £40billion annually by 2050,
| GETTYHe notes that many young adults now request retirement planning based on receiving no state pension at all.
The Institute for Fiscal Studies has warned the triple lock could cost up to £40billion annually by 2050, raising questions about its long-term sustainability.
Rebecca Williams, a Financial Planning Lead at Rathbones, says: "Starting early, saving consistently and making the most of workplace pensions and employer contributions can make a powerful difference over time."