Equality in State Pension age – is it enough for a comfortable retirement?
Women will now begin to qualify for their State Pensions at the same age as men – currently 65, it has been announced. This landmark ruling to equalise male and female pensions ages has been a long time coming, some 25 years in fact.
Neil Boulton, Operations Director at Forrester Boyd Wealth Management looks at what this means and what the future holds for State Pensions and saving for your retirement.
65 is now the earliest age that you can start to receive your State Pension, with the State Pension age (SPA) increasing to 66 by October 2020 and 67 by 2028. Anyone who reaches their SPA on or after 6 April 2016 will receive the new State Pension (known as the single-tier State Pension). This may be different to your selected retirement age for your workplace or personal pension* so always make sure that you are aware of these dates.
The equalisation of the State Pension age is a prompt for women to think about how much they will need to save for a comfortable retirement. The gender pay gap, career breaks to raise a family or care for the elderly, part-time working are all factors that can affect the ability to save for retirement so whilst the news about the state pension age is good news for women, careful planning and consideration into retirement planning is still of fundamental importance.
The challenge now is the impact of life expectancy. It has been well documented that we are living longer and our aging population is growing putting extra strain on government services. This too will have an impact on the State Pension which the government are continually monitoring to ensure they are responsive to these changes.
So the move to increase the State Pension age is the government’s response to accepting that unless the qualifying age increased, retirement would start to become very uncomfortable.
No matter what stage of life you are at, whether just starting your career or beginning to plan what you would like to do in your retirement years, I would recommend talking to a financial advisor about your options and plan for your retirement today.
Talk to one of Forrester Boyd Wealth Management’s wealth advisors today about your future finances.
Forrester Boyd Wealth Management Limited is authorised and regulated by the Financial Conduct Authority.
* A Pension is a long term investment the fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.