UK Women hit hardest as State Pension Age rises

By the National Pensioners Convention 

SEPTEMBER 23, 2025

Women in their late 50s who were out of work have been the hardest hit by the rise in the state pension age from 60 to 66, according to new research from the Institute for Fiscal Studies (IFS).

The report found that unemployed women in their 50s experienced far greater income losses than those still in paid work when the reforms were phased in between 2010 and 2020. On average, weekly incomes for unemployed women fell by £81, compared with a £42 drop for women who were working in their late 50s.

The study, funded by the IFS Retirement Saving Consortium, noted that these women were also more likely to have lower incomes, health problems, or disabilities.

Despite the sharp fall in income, researchers found no evidence of reduced spending on essentials such as food or energy. However, participation in social activities – including sports clubs, museum visits and theatre trips – fell by eight percentage points, dropping from 53% before the reforms. Well-being also declined.

The government’s ongoing third review of the pension age must consider how best to support those struggling. Read the report here.

Meanwhile, behind the headline-grabbing 4.7% State Pension rise, a majority of pensioners still struggle on a smaller old pension.

Thanks to the Triple Lock the State Pension looks set to increase by 4.7% next spring – but the National Pensioners Convention warns that the media headlines do not tell the whole story.

Only a third of the UK’s 12.95 million retirees receive the ‘new’ state pension. However a staggering 8.7 million – including our oldest and most vulnerable – are on the old, pre-2016 state pension, so will see a much smaller rise.

Brian Sturtevant, Chair of the NPC Pensions and Income Working Party said:  “A reported 4.7% rise in the State Pension under the Triple Lock mechanism may sound generous on paper, yet millions of older people still face serious hardship. Many are on the much lower basic State Pension, and do not receive the full amount, so the actual cash increase they see is far smaller than the figures being widely quoted.

“At the same time, inflation remains stubbornly high, energy bills are set to rise by 2% in October, and food prices continue to climb. Pensioners on a fixed income, many of whom rely solely on the state pension, are still being forced to make impossible choices between heating and eating. We need a serious conversation about how to protect the most vulnerable from falling further behind.”

The government’s “triple lock” guarantees the state pension rises each year by the highest of three measures: 2.5%, inflation, or average earnings growth.  Data released by the Office for National Statistics (ONS) shows that total pay, including bonuses, rose by 4.7% in the three months to July. With inflation forecast at 4% for September, it is likely that the 4.7% wage growth figure will be used to set next year’s state pension rise for the third consecutive year.

There is also a catch for those receiving the new state pension increase next April – many will start paying income tax for the first time.  Currently, the personal tax allowance stands at £12,570, frozen until 2028. As the value of the state pension edges closer to this threshold, more pensioners will find themselves paying tax on their main source of income, very often because they also have a small occupational pension or receive interest on savings that take them over the limit.

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