Today’s workers must brace themselves to retire later and later, while pensioners may see annual State Pension increases scaled back. Funding a comfortable retirement will get a lot harder for everybody as a result, a top pensions expert has warned.
The State is pulling back from pension provision, putting the onus on individuals to support themselves in their later life, says Tom Selby, head of retirement policy at wealth advisers AJ Bell.
The State Pension will start rising to age 67 from 2026, which is now just four years away.
It will then increase to 68, possibly from as early as 2037, but Selby says this is only the start. “The State Pension age will soon rise beyond 68 as average life expectancy continues to increase.”
Younger workers will have to wait even longer as the retirement age climbs higher and higher, he warns. “They should prepare to receive their State Pension from age 70, or potentially at an even later date.”
Selby said today’s workers need to save flat out if they want to look forward to a decent retirement.
His advice is clear: “Save early and save…