🚨 Heads up, folks! Big changes are coming to the State Pension age! 🚨
Starting next year, the UK retirement age will gradually rise from 66 to 67, aimed to be fully in place by 2028. And that’s not all—planning ahead, there’s a push to move the age up to 68 between 2044 and 2046. But here’s the kicker: If this bump happens sooner, around 3 million people could face delays in retirement plans! 😲
Why the shift? The government is considering factors like life expectancy, the labour market, and costs to ensure the pension system’s sustainability. The forecasted State Pension spending is set to hit £169 billion by 2029/30!
Curious about the numbers? Currently, 13 million people get the State Pension, with varying payments based on whether you’re on the Old or New plan. To snag your full New State Pension, you’ll need around 35 years of National Insurance contributions, but it can be more if you were “contracted out.”
Phoenix Insights recently shared some interesting stats:
🔹 Only 18% of adults feel they could rely solely on their State Pension in retirement.
🔹 A whopping 35% of those aged 60-65 have no private pension savings.
🔹 Almost half of adults may need to work past retirement age to fill savings gaps.
🔹 Expedited age increases to 68 could impact millions.
So, what’s next? We’re expecting another review soon, which could bring more clarity on these changes and their timetable. Until then, let’s keep an eye out for updates and see how this unfolds. Staying informed and prepared is the way to go! 💬
What do you think about these upcoming changes? Share your thoughts below! 👇