Savers have warned that long, happy retirements will be “consigned to history books.”


Savers warned that long, happy retirements would be “consigned to history books.”

As the government prepares for a major change, state pension savers have been warned that “the idea of a long, enjoyable retirement appears set to be consigned to the history books.”

After Prime Minister Boris Johnson and Chancellor of the Exchequer Rishi Sunak decided to scrap the triple lock, the state pension has been the subject of heated political debate in recent months.

It means that, in line with September’s inflation rate, state pension payments will only rise by 3.1 percent.

Many expected it to rise by 8.3% in line with the skewed average earnings figures, but the government deemed such an increase unjust.

Another important topic is the state pension age.

The government may speed up plans to raise the state pension age to 68, according to reports last month.

According to initial plans, those born on or after April 1977 would have to wait until they were 68 to receive the benefit by 2046.

However, according to a recent government review, the age increase will be phased in between 2037 and 2039.

In any case, many people are concerned that, because the state pension age is only likely to rise in the long run, young people will be forced to work much longer than they had planned when they reach retirement age.

“The idea of a long, enjoyable retirement appears set to be consigned to the history books,” Becky O’Connor, the head of pensions and savings at the website Interactive Investor, told The Guardian last month.

“It’s no surprise that today’s younger workers have little faith in the state pension being available to them when they retire, with many believing they’ll have to work indefinitely.”

“For those who find themselves unable to work before reaching the age of 68 due to age-related illness, the inability to claim a state pension poses significant problems.”

“Around the age of 63, people can expect to begin experiencing health problems that may prevent them from working, leaving many people facing several years of relying on private pensions, which may be inadequate in any case, or other benefits.”

“While it had been proposed that the state pension age be raised to age 68,” said Helen Morrissey, a senior pensions and retirement analyst at Hargreaves Lansdown.

“Brinkwire News in Condensed Form.”


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