2 weeks Ago
Millions of people born between 1965 and 1974 have been warned they could be set to miss out financially when they come to collect their State Pensions. Experts are urging anyone in their 50s to reassess their retirement plans after the government was urged to consider raising the state pension age to 68. A report published by the London School of Economics (LSE) urged the Chancellor to raise the state pension age to 68 “as soon as possible”.
The current state pension age is 66, and is due to rise to 67 between 2026 and 2028. Do pensioners pay tax? It is then scheduled to rise to 68 between 2044 and 2046, but experts warn that if that date is brought forward, people in their 50s currently will be significantly impacted. Experts from Spencer Churchill Claims Advice said: "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. "Families will feel the impact too. Many households rely on older family members for support with childcare and daily routines.
“Extending the working age could disrupt these arrangements and place additional stress on family units, requiring a re-evaluation of work-life balance at a critical time. "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. “A higher pension age could lead to more over-50s struggling to stay in roles they may find physically or mentally challenging, especially in industries less accommodating to older workers.
“This is especially true for those in physically demanding jobs where longevity isn’t always possible. "The pandemic underscored just how fragile retirement planning can be, especially for over-50s who were disproportionately affected by redundancy and early retirement. “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.
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