How old will you have to be before you are entitled to a State Pension?
The State Pension system in the UK is fairly straight forward. You must have paid sufficient National Insurance contributions (usually done by completing 30 years of qualifying contributions), then attain a certain age (currently 65). At this point, you are entitled to a State Pension. Simple right?!
At the moment, that would mean that the Government will pay for me to retire at 65 – which is great, however, the State Pension age is on the rise and will increase to 66 between November 2018 and October 2020, to 67 between 2026 and 2028 and to 68 has been pencilled in for completion by 2046, but is likely to be brought forward.
Will it stop there? I doubt it.
People in the UK are living longer, at a good rate too. According to the Office of National Statistics (ONS) the average man aged 65 can expect to live another 18.3 years and a woman of the same age will live a further 21 years.
As the State Pension is such a drain on the budget, I can’t see the age settling for long at 68. Some experts suggest the age should already be at 73 to keep pace with rising mortality rates.
So what is the answer? Means test the State Pension? Put the age up? Higher Taxes?
The best way to ensure YOU can retire when YOU want is through private savings. The new Pension flexibility rules, the tax relief incentives and tax efficient growth environment are making Pensions a very attractive place to save.
Start early, make some solid plans and begin saving.
So, “When can I retire?”
It is up to you!