Do You Know Your Retirement Age?

  • Some 47% of all over 50s and 11% of over-66 are assumed to be in work by 2030
  • Britons aged 50 to 64 have noticed their portion of the nation’s wealth shrink
  • They now hold 36% of the total UK’s capital, compared to 42% a decade ago

We once looked only at age 60 for Women and 65 for Men as the age we would retire.

Sadly, it has changed over the last 20 years, with State benefits in the UK going on past these dates and the potential to increase further. Although only last week, I received news that we may see the private pension not being drawn until age 68, I know that my state pension will be payable at age 67, 2 years after the normal age we all remember.

So why is this? Well, for one, we are all living longer; we have therefore seen pressures on the state benefit system, hence the increase in age at which you can claim. Also, we have seen a reduction in people’s wealth; those in their 50’s seem a little worse off.

Figures released from Legal & General centre for economics and business research reported that those aged 50 to 64 had seen their Wealth shrink to 36% of the UK’s wealth, compared with 42% only a decade ago.

Legal and General also reported that people in their 50’s still in work had increased over the years, with 1992 showing that 31% of people in their 50’s working, to a figure now of 42%, what makes things scary is that by 2030 they predict that figure to rise to 47%, which will be a new record high.

This increase shows an overall rise of 36% in the last 20 years, not the brightest of pictures to be painting.

Now take into consideration that the state pension age increased in October 2020 to age 66, figures show that the number of people working at this age or over at the end of the decade will increase to 11% from 8% currently, again this will be another record and not in a good way financially.

State Pension Benefits 

At the moment, we know that the next increase will be between 2026 and 2028 when the state pension age for both men and women will rise to 67.

Retirees on the full flat-rate state pension currently get £179.60 a week or around £9,300 a year if they reached state pension age after April 2016.

For people who reached state pension age before that date, the old basic state pension is £137.60 a week, or around £7,200 a year.

It is not sufficient for the majority; as discussed above, we know it is becoming increasingly difficult to save sufficiently to bridge the gap between work life and the pension life balance?

Whether you have a company supported pension or are making personal contributions to a personal pension plan, we recommend you review the plan to align yourself with the new goal you must set yourself.

Here at Corestone, we can help you understand the goal setting you need to prepare and how to get there. But, more importantly, we offer you simple savings methods that will give you the flexibility you need when making these critical lifestyle decisions; we believe that informed decisions are the best decisions.

 

Login to your account