The increase in age you can claim state pension is set to rise to 67 in 2026, which will have a knock-on effect for those aged between 53 and 62 years old who need to take time off due to ill health – which has risen by 34%.
Employees who cannot work due to ill health will be left on Universal Credit for a year longer rather than becoming eligible for Pension Credit, meaning they will be worse off by £27 each week.
Research from the Health Foundation found that workers living in the north of the UK will be hit the hardest too.
Its data showed that people living in the most deprived areas of Scotland, the Northeast, East Midlands, Yorkshire, and the Humber are at risk of being particularly left behind by the increase in State Pension age.
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In Blackpool, 8.2% of workers were unable to work due to ill health compared to a low of 1.7% in the south-eastern town of Wokingham, and the charity is calling for Rishi Sunak to do more in support.
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Dave Finch, assistant director at the Health Foundation, said: “The Government’s State Pension age policy fails to acknowledge the decline in the health and work prospects for people in their 50s and 60s in the UK, leaving thousands at risk of living in poverty for longer. Prolonging poverty for people nearing retirement risks further deterioration in their health and potentially greater government costs in the long run.
“The upcoming Autumn Statement presents a critical opportunity for the Chancellor to alter the current path faced by groups nearing State Pension age.
“The risk of spending longer in poverty can be reduced by providing the equivalent of Pension Credit support for people aged 66 years from April 2026, while increasing the scale and speed of access to employment support can better support those with long-term sickness back to work.”