State pension fury as older Brits warned of tax hammering in brutal 'double whammy'

British pensioners are being warned of a "double whammy" hit that could land millions into financial hardship. Experts warn that the combination of the state pension age increasing and a stealth tax raid on retirement savings could have stark consequences for future pensioners.

The Investing and Saving Alliance (TISA) has emphasised that policy decisions should not be driven solely by longevity. They have cautioned that the dual approach could lead millions into money issues in their later years, urging policymakers to take an approach which aims for current and future generations to receive a state pension for a similar proportion of their adult life. In a submission to the "Third State Pension Age Review", the organisation put forward a number of proposals to safeguard retirees.

As reported by GB News, their proposals include a minimum 12-year lead time for any changes made to the state pension age, as well as early access options and stronger auto enrolment measures. The alliance also highlighted the need to consider how raising the state pension age impacts retirees with medical and AI advancements increasing life expectancy in the near future.

Renny Biggins, head of retirement at TISA, said: "Raising the SPA while simultaneously scaling back tax incentives for private pension saving risks creating a double whammy for future retirees.

"Without sufficient time and support to plan, many individuals - particularly those in lower-income households or with shorter life expectancies - could find themselves financially exposed."

There is currently a concern about fairness between generations with current workers facing the possibility of supporting the retired population while they wait longer for their own state benefits. Recent research shows that present savings levels fall short of securing sufficient retirement funds.

A recent study of 6,000 people by Standard Life found that over half of people are worried they aren't saving enough money for their retirement. Meanwhile, just 15% prioritise their pension savings with 47% feeling their retirement finances are outside their control.

Data also shows that one in four people aged between 60 and 65 currently experience poverty. This highlights existing vulnerabilities within the system even ahead of potential changes.

Biggins added: "The state pension is a cornerstone of retirement income for millions, and we welcome the government's intention to ensure its long-term sustainability. But any changes must be part of a joined-up strategy that considers private pensions, health inequalities, and the broader economic landscape.

"TISA stands ready to work with government and industry to ensure that future reforms are fair, sustainable, and support better retirement outcomes for all."