State pension age update as £17,000 warning sent to anyone aged 51, 52 or 53

State pension savers born between certain years could lose out on over £17,000 if Labour carries out potential changes to the retirement age. If the age at which you can claim your state pension increases to 68 sooner than expected, this could cost millions of workers thousands, a wealth management firm has warned.

The state pension age sits at 66 currently, and will rise to 67 by 2028. It is expected to rise to 68 by 2046, but it has been reported that the Labour Government are considering bringing this change forward in order to rein in public spending.

The changes could mean the state pension age rising to 68 as early as 2039. New analysis by Rathbones estimates that if the deadline were pushed to 2039-2041, those aged 51-53 now would stand to lose £17,774.

Those aged 52 would lose £16,918 while those aged 51 would lose £17,340.

Rebecca Williams, divisional lead of financial planning at Rathbones, said: "With longevity increasing and population pressures mounting, future generations appear set to face a less generous state pension regime than that enjoyed by many of today's retirees. The situation appears particularly precarious for those in their early 50s who face a real prospect of missing out.

"The state pension alone is not enough for a comfortable retirement. Individuals need a broad foundation built on workplace pensions, private savings, and the ongoing support of pension tax relief. Cracks are beginning to show in the system, and they must be addressed urgently if we are to maintain faith in the UK's pension framework and ensure people are equipped not just to survive, but to thrive in later life."

Liz Kendall, Secretary of State for the Department for Work and Pensions, warned that "it is even more imperative to help future pensioners put into a savings pot they can rely on in the future".

She added: "My big worry is, so many young people have not even got a hope in hell of getting on the housing ladder, they're being absolutely killed by their rent, and if you are paying off your mortgage in retirement, or still renting in retirement, that is what is driving this sort of tsunami of pensioner poverty that is coming our way.

"Put simply, unless we act, tomorrow's pensioners will be poorer than today's, because people who are saving aren't saving enough for their retirement.

"And crucially, because almost half of the working age population isn't saving anything for their retirement at all."