Those aged 50 and over have been advised to start saving every month to bridge the one-year gap if the state pension age rises from 67 to 68 earlier than planned. According to research by Barnett Waddingham, a leading UK professional services consultancy across risk, pensions, investment and insurance, Brits over the age of 50 should save an additional £74 a month.
According to the Office for Budget Responsibility’s (OBR) July 2026 report, the state pension could rise to 68 between 2037 and 2039. However, the increase remains legislated to take effect between 2044 and 2046.
The company calculated that a saver earning £38,000 would need to increase pension contributions by around 2.3% of salary until retirement to bridge the one-year gap before becoming eligible for the state pension.
Higher earners would need to save a fairly similar amount; however, the extra cash would account for a smaller proportion of their salary. For example, a saver earning £80,000 would also need to save £74 a month, but that would represent around 1.1% of their salary.
The company also noted that the modelling assumes that individuals would continue working and contributing to their pensions until they retire at 67, and that those hoping to retire earlier “will have even less time to plug the gap”.
Barnett Waddingham partner, Martin Willis, warned a typical 55-year-old would need an extra £74 a month.
He said: “Our modelling suggests a typical 55-year-old on average earnings would need to find around an extra £74 every month – and if that’s difficult for someone on average earnings, it’ll be even harder for those on lower incomes.”
Barnett Waddingham research shows that while most savers would miss out on roughly the same amount of pension income, replacing the lost income would be more of a burden on lower and middle incomes.
Mr Willis said: “The cash amount may be similar, but it takes a much bigger bite out of the budget for someone on average earnings than it does for a higher earner.
“That’s why giving people plenty of notice of any changes is so important.”