A new study shows that Gen Z, born after April 1977, could lose out on £69,900 in state pension as the pension age is set to increase from 66 to 68. Younger generations will have to save more into private pensions to achieve a comfortable retirement, according to a wealth manager.
Gen Z could lose out on £69,900 in state pension after it is hiked to 68, a new study shows. The state pension age is already on the rise from 66 to 67, as extra months are being added gradually between now and spring 2028.
It's meant to rise again to 68 between 2044 and 2046, which would affect those born on or after April 1977. For someone aged 25 today, this could mean missing out on up to two full years of state pension payments, worth around £69,900, according to wealth manager Rathbones. Richer people who are likely to live longer benefit disproportionately from the triple lock.
Many young adults we’ve come across ask for retirement modelling for worst case scenario of no state pension. 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. Money experts warns the cost will soon become prohibitive, and force governments to raise the state pension age faster
Gen Z State Pension Age Increased Pension Age State Pension Age Increase Triple Lock Guarantee Pension Modelling Retirement Planning
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