Savers need to plan for rising retirement age
The state retirement age has been gradually increasing, meaning that workers will soon have to work until they are approaching their 70s before they are able to retire and claim a state pension.
For some people, that may not be too much of a problem, but for those who have health issues, this may not be the case. Data indicates that there are over a million people, both men and women, who are already working past the age of 65. This number is increasing.
According to a study by the insurers Aegon UK, nearly 40% of retirees had to give up their job before the state retirement age, either due to health problems, redundancy or not being able to physically cope with their job. The Golden Age of Retirement report indicated that only around 50% of the working population had retired from work when they had thought they would do so.
Just Retirement had also conducted a study, which shows that large numbers of women have to stop working earlier than expected, due to caring for an elderly or sick relative. Stephen Lowe, the communications director of Just Retirement, said:
“People are being urged to think about working for longer, but our research shows the decision is not always in their hands.”
The government is forging ahead with its plans to increase the state retirement age, and by the year 2046, the state retirement age will be 68. For most people, the simplest way to provide for retirement when they are ready, will be to invest into occupational schemes.
