Retirement age hike has left women hundreds of pounds worse off

More than one million women whose retirement was delayed by state pension changes have lost out on an average £32 a week, according to a new report.

The Institute for Fiscal Studies (IFS) has found the state pension age increase for women from 60 to 63 between 2010 and 2016 saved the Government £5.1 billion in 2015/16, but hit the household incomes of women affected, with more staying in work for longer.

Low-income households have been particularly hard-hit. The reform has pushed rates of income poverty – ie, having an income below 60% of the average – among 60 to 62-year-old women up sharply by 6.4 percentage points, after housing costs have been deducted.

Despite the changes, the IFS found no evidence of 'material deprivation' (a measure of whether someone can afford important essential items) which it suggested meant the women had managed to adjust their spending to the delay in receiving their state pension.

How is state pension age changing?

Under the 1995 Pensions Act a timetable was drawn up to equalise the age at which men and women could draw their state pension.

While many women currently get the state pension at age 63 and men at age 65, the thresholds are moving up.

By 2020 it will be 66 for men and women, and it'll rise to 67 for both between 2026 and 2028.

Last month the Government announced plans to increase state pension age to 68 seven years earlier than expected. See the Millions face waiting an extra year for their state pension MSE News story for more.

To check the date on which you'll receive your state pension, see the Government's full state pension age timetables.

A Department for Work and Pensions spokesperson said: "The decision to equalise and increase the state pension age is both fair and sustainable for future generations and in line with continuing rises in life expectancy.

"Women retiring today can still expect to receive the state pension for over 24.5 years on average – which is more than any generation before them and several years longer than men. By 2030, more than three million women stand to gain an average of £550 extra per year as a result of the new state pension."