What is the current retirement age? Government plans pensions review
The government has announced a review of state pension age, which could see workers needing to continue for an extra four years.
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Work and pensions secretary Liz Kendall said Labour is set to revive the pensions commission to provide recommendations for how to boost retirement income from 2027.
She is looking to take action with 45 per cent of working-age adults currently putting nothing into their pensions, with tomorrow’s OAPs forecast to be less well-off than today’s.
The pension age was already set to increase, but it was reported this week that Ms Kendall could seek to set it as a new high watermark of 70.
This might become a reality, according to reports, if the government decides to link the retirement age to life expectancy.
One quarter of the British population is set to be at least 65 come 2050.
Read also: Do you know your state pension age? It could be later than you think
The government has not confirmed that it will put the age up to 70, although this has already been done in Denmark - which has Europe’s oldest retirement age.
We’ve taken a look at the current retirement landscape, what it means for you and when you might expect to retire.
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What is the current retirement age and when is it changing?
Currently, Brits get access to their state pension at 66.
However, by 2028, this is expected to rise to 67 and by 2046, the age of retirement will be 68.
Recent Government reviews, however, suggest this increase in retirement age could be brought forward.
A recent state pension age review, published in 2023, recommended moving the retirement age to 68 by 2041 - but some reports say it could even be brought forward to the 2030s.
How will you be affected?
Put simply, the younger you are, the longer you will work.
For those born in the 1970s, retirement age will be 68 at the absolute earliest.
Meanwhile, Brits born in the 80s and 90s can expect to feel the brunt of these changes and could be expected to work well into their 70s.
How can you retire early?
Well, just because you don’t have access to your state pension doesn’t mean you can’t retire.
- Start saving early, be that in a high-interest savings account or in a private pension.
- Set saving goals.
- Ask a financial advisor for the best way to both save and increase your wealth.