State Pension Age increase brought forward

In August 1, 2017
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Six million men and women will have to wait a year longer than they expected to get their state pension, the government has announced.

The rise in the pension age to 68 will now be phased in between 2037 and 2039, rather than from 2044 as was originally proposed.

Seven years earlier than initially planned, the government have stated that the increase to 68 will “maintain fairness between generations”, parallel to the pace of life expectancy growth.

According to the Office for National Statistics figures, the number of those over the State Pension age is set to increase by up to a third between 2017 and 2042; rising from 12.4 million to 16.9 million.

At present, the existing legislation has the increase planned for 2044 and 2046. The amendment will mean those currently aged between the ages of 39 and 47.

David Gauke. The Secretary of State for Work and Pensions highlighted the reflective nature of the change, as well as improving the approach toward retirement saving.

“Since 1948 the State Pension has been an important part of society, providing financial security to all in later life. As life expectancy continues to rise and the number of people in receipt of State Pension increases, we need to ensure that we have a fair and sustainable system that is reflective of modern life and protected for future generations.

“Combined with our pension reforms that are helping more people than ever save into a private pension and reducing pensioner poverty to a near record low, these changes will give people the certainty they need to plan ahead for retirement.”

It is vital to begin planning for your retirement early to ensure that when you do retire, you have the standard of life that you desire.

This increase in the State Pension age really stresses the importance of ensuring that your Private Pensions are working as hard as they possibly can for you. Together with the increase in life expectancy, the State Pension is likely to be stretched further and further and it is inevitable that the age of receipt will continue to rise.

If you would like to learn how to consolidate your Private Pensions and ensure that they are invested in a way that will ensure growth and minimise the risk of further State Pension increases, book an Initial Meeting with us to discuss how to make your Private Pensions go further.

Jasmine has been a qualified Financial Planner since 2008. She has also been a member of the Society of Will Writers since 2012. She is passionate about helping Clients build their wealth and achieve the financial lifestyle they desire. Her areas of expertise are that of Savings, Investments, Pensions and Retirement Planning.

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