02 Mar 2016

Could pension age review have you working until you're 75?

Could pension age review have you working until you're 75?

 

The UK Government has launched a fresh review of the State Pension age, sparking fears that those starting work now may have to wait until their mid-seventies before they retire.

Former CBI Director General John Cridland CBE has been appointed to lead a fresh shake-up by Minister for Pensions, Ros Altmann.

Currently, the state pension age is set to be 67 for both men and women by 2028.

However, those under the age of about 55 will be affected by any changes, which will consider what the state retirement age should be from April 2028.

The government said the review will consider a wide range of evidence and analysis, including whether the current system of a universal State Pension age rising in line with life expectancy is "optimal in the long run".

Sustainable for future generations

Baroness Altman said the review is about making sure the financial implications of pensions are sustainable.

"As our society changes it is only right that we continue to review State Pension ages and take into account the relevant factors to make sure that the State Pension is sustainable and affordable for future generations," she said.

Allan Gardner, pensions expert and Financial Services Director at Aberdein Considine, believes the retirement age will increase faster than currently expected.

He said: "I think it is the government's desire to continue increasing the State Pension age as people continue to live longer.

"The average life expectancy in Scotland is 80 - who knows what that will be by 2028, but I'd imagine it will be far higher due to medical advances.

"Therefore, people starting work today will probably have to work into the mid-seventies before retiring. Everyone needs to think about their retirement income, even if you have just started work."

Independent advice

Aberdein Considine has a network of independent financial advisers spread throughout Scotland, including the cities of Aberdeen, Edinburgh, Glasgow, Perth and Stirling.

If you would like to speak to Allan or a member of his team, call 0333 0066 333 or click here.


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