State pension age rise and retirement planning

From 2019, the state pension age will start to increase for both men and women to reach 66 by 2020. The government is planning further increases, which will raise the state pension age from 66 to 67 between 2026 and 2028.

Jonathan Watts-Lay, Director, WEALTH at work, said: “It’s vital those approaching retirement review how much retirement income they will need, or would like, as early as possible. If there is a shortfall up until the point of receiving the state pension, saving more now or working longer than planned could make a real difference if either option is possible for them.

“The value of well-thought-out planning from early on should not be underestimated. Financial education delivered in the workplace can help individuals set and achieve their financial goals, giving them more control over their finances, and ultimately their retirement plans in the future.

“Once at-retirement, guidance and regulated advice should be made available to employees to support better decision making and protect them from costly mistakes, such as paying unnecessary tax or being scammed. Helping employees make the right choices in order to optimise their retirement income should be a priority.”