pensions and retirement

Retirement age set to increase even further in just two years

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havenifa


Posted on: 13th February 2020

Despite the fact the ongoing campaigns to lower the retirement age back to 60, it will rise to 67 in just two years. The state pension age for men and women is currently 65 but will increase to 66 by October 2020. Between 2026 and 2028, it will rise to 67. However, it is “likely” that the age will increase further as the Government aim to review the system from 2023.

Age UK policy Expert, Sally West, spoke with Express.co.uk and said: “The legislation has been passed to increase the state pension from 66 later this year. There’s also a law that’s been passed to increase it further to 67 and that’s between 2026 and 2028. After that, one of the things the Government has introduced is regular reviews of state pension age.

“We had one a couple of years ago. The next one has to take place before 2023 and that will be looking at changes in longevity. But also, there will be an independent report looking at a whole range of other factors such as the differences in life expectancy and health issues.

“After that next review, the Government will consider what happens after 2026-28. I suppose it is likely there will be further increases in the future but we only know at the moment up to 67.

“Age UK will be continuing to press on the issues for the more disadvantaged group because increases in state pension age particularly affect those who are more reliant on their state pension and also may be less likely to have a long and healthy life expectancy.”

Getting more from your state pension

Ms West has previously discussed the ways in which retirees can get more from their state pension.

While the basic state pension is £168.60 a week, this can be increased if a claimant fills in the gaps on their contribution record or defers their claim. Deferring from a state pension can provide claimants with an additional 5.8 per cent a year on top of the basic rate.

Ms West said: “There may be occasions where you’ve got recent gaps in your contribution record. For example, perhaps you had an occupational pension, but you stopped working before state pension age and you’ve not built up a record.

“It may be possible to fill up those gaps. You need to check; you need to work out if there are gaps. If so, how much it would cost to fill those, whether you can and whether you feel it’s worth it.”

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No matter your financial situation, planning ahead for any changes is essential for a comfortable and enjoyable retirement. With the help of an independent financial adviser, you can relax knowing your pension is in safe hands. This is where Haven IFA comes in. If you would like to make the most from your retirement savings, get in touch to see how we can help.

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