The state pension age will be lowered to 63, which will result in ‘reduced’ payments.
THE STATE PENSION AGE could be lowered to allow for earlier access, but an expert has cautioned Chancellor Rishi Sunak that this would mean a reduction in payments.
As the state pension is set to undergo a variety of modifications, Chancellor Rishi Sunak is under increasing pressure. The triple lock, which ensures that the state pension advances in line with the highest of inflation, average wage increases, or 2.5 percent, might be scrapped or altered. This is because, as a result of the country’s recovery from the Covid epidemic, average incomes could climb by eight to ten percent, a higher increase than usual.
However, a petition urging the government to cut the pension age started a new debate about the state pension last month.
People can now collect their pension money at the age of 66, but the petition stated that lowering the pension age would aid the UK’s recovery.
“Young people are failing to find work and are losing their jobs as a result of the pandemic,” it stated.
“Why not enable older people to retire early, freeing up jobs for the younger generation?”
“There would be a cost, but surely it would be considerably more beneficial than paying Universal Credit?
“Not to mention the possibility of redressing the balance in favor of young people and assisting in the restoration of their future.”
However, Steven Cameron, a pension specialist at Aegon, has warned that lowering the age at which the state pension may be obtained will only result in lower monthly benefits.
“The older the state pension age is, the more difficult it will be for people in stressful or manual occupations to continue working until state pension age,” he stated in a statement.
“There is a case to be made for the government to look into enabling people to start receiving their state pension at a younger age, maybe 63, but at a lower rate to reflect the fact that it will be provided for a longer period of time.
“Offering early access at a discounted rate might be a huge help to tens of thousands of people. It is already feasible to postpone taking state pension in exchange for a higher weekly payment.
“Pension freedoms have become extremely popular in the private pension arena, allowing people to have greater discretion over when they begin drawing their defined contribution pension and how much they take as their retirement develops.
“However, this isn’t reflected in.”Brinkwire Summary News.”