Check your forecast immediately as ‘goalposts for payment shift’ are being set for the state pension age adjustment.
According to new study from Canada Life, state pension age increases have forced many people to modify their retirement plans. A number of investors also expect state pension payments to constitute the “bedrock” of their retirement income.
In recent years, state pension ages have progressively risen as state law has pushed retirement ages higher. Currently, the majority of people will receive their state pension at the age of 66, but this will increase in the coming years.
The state pension age will be raised to 67 between 2026 and 2028, according to the government’s current plan.
By 2046, it will have increased to 68.
State pension age changes have impacted many people’s retirement plans, and middle-aged homeowners have been particularly affected, according to new study from Canada Life shared exclusively with This page.
Canada Life recently conducted a poll of 1,020 UK homeowners aged 40 and up, and the results were announced today.
Changes in state pension regulations have influenced the retirement plans of homeowners over 40, according to Canada Life, with barely a fifth planning to retire at the state pension age.
Nearly a third of respondents (31%) stated they want to work beyond the state pension age, with this number rising to 50% among those over the age of 60.
Similarly, 34% intend to leave their jobs early and retire before the age at which they are eligible for a state pension. One in ten people (11%) stated they had already ceased working before receiving their state pension.
When asked what they expect to be their main source of income in retirement, nearly a third (28%) of homeowners aged 40 and up expect the state pension to be the “bedrock” of their income (22 percent for men vs 36 percent for women), despite the fact that the full state pension is currently £179.60 per week, or £9,350 per year.
When it came to deciding which sources of income would be included in retirement planning, a gender divide developed.
While both men and women anticipate to rely on the state pension equally, gaps arose in the following assets, according to Canada Life:
The same study also found that householders over the age of 40 are less likely to seek financial help.
Only three out of ten people (28%) intend to see a financial consultant before making a decision about how to access their wealth in retirement.
“Brinkwire Summary News,” by Andrew Tully, a technical writer.