A STATE Pension warning has been issued to thousands across Scotland.
People in their 50s have been told their current retirement plans could look a lot different if the government raised the pension age sooner than predicted.
A report which was published by the London School of Economics (LSE) urged the Chancellor to raise the age to 68.
The age is currently 66 for both men and women.
And the LSE urged to UK Government to raise it “as soon as possible”, but it is scheduled to rise to 68 between 2044 and 2046.
Experts from Spencer Churchill Claims Advice said if the age was to rise sooner, then it could put people in their 50s in a “financially precarious position”, the News and Star reports.
This affects people born between 1965 and 1974.
They added: “The decision to raise the state pension age to 68, especially if accelerated, could fundamentally reshape retirement plans for millions of individuals.
“For those born between 1965 and 1974, this policy change could translate to additional years in the workforce that were not anticipated.
“Many over-50s may not have the health or the resources to sustain their employment until 68, making this a real concern for both financial and physical well-being.
“We’re hearing from individuals who have planned their careers and savings based on the current pension timeline, and a sudden increase could place them in a financially precarious position.
“The reality is, without sufficient private pensions or savings, this shift will leave a substantial portion of this age group unprepared to bridge the income gap.
“We are already seeing a trend of over-50s who are either reconsidering early retirement or returning to work due to the growing uncertainty around pensions.
“These individuals often face fewer employment opportunities if they seek to return to work, and extending the pension age may further exacerbate financial pressures on their already limited savings.”
How does the state pension work?
AT the moment the current state pension is paid to both men and women from age 66 - but it's due to rise to 67 by 2028 and 68 by 2046.
The state pension is a recurring payment from the government most Brits start getting when they reach State Pension age.
But not everyone gets the same amount, and you are awarded depending on your National Insurance record.
For most pensioners, it forms only part of their retirement income, as they could have other pots from a workplace pension, earning and savings.
The new state pension is based on people’s National Insurance records.
Workers must have 35 qualifying years of National Insurance to get the maximum amount of the new state pension.
You earn National Insurance qualifying years through work, or by getting credits, for instance when you are looking after children and claiming child benefit.
If you have gaps, you can top up your record by paying in voluntary National Insurance contributions.
To get the old, full basic state pension, you will need 30 years of contributions or credits.
You will need at least 10 years on your NI record to get any state pension.