The state pension age has been undergoing radical changes since April 2010 and has this week been increased to 66. This means that men and women born between 6th October 1954 and 5th April 1960 will begin to receive their state pension on their 66th birthday.
However, for those born after 5th April 1960, there will be a gradual increase in the state pension age to 67 by 2028, and eventually 68 between 2044 and 2046. There are also plans to bring this timetable forward, which would mean the state pension age would increase to 68 between 2037 and 2039.
To find out when you could be eligible to receive your state pension, click here.
The full state pension amount is £175.20 per week for new recipients, although the actual amount may differ slightly depending on your national insurance record (the full state pension amount is paid to those who have made a minimum of 35 years’ worth of National Insurance contributions during their working life).
The importance of having a private pension and reviewing it regularly
For many, the state pension may not be enough to retire comfortably on. Regardless of your age, the importance of investing in a private pension, for example a workplace pension, should not be overlooked.
However, as there are limits on how much can be paid into a pension, it may also be suitable for you to consider alternative savings strategies to run alongside the pension. These should be considered as a long-term investment to secure you a comfortable future.
Future events have a habit of feeling very distant until they arrive and it is easy for you to put saving for retirement to the back of your mind, especially if you have more immediate financial concerns. However, there is no doubt that the earlier you start saving, the better the outcome.
If you already have private pensions, savings and investments in place, which you have been paying into for a number of years, it is important to review these, preferably with a financial adviser. This allows you to take stock of your current situation and see whether your plans are on track to meet your retirement goals.
A review of a private pension and investments, with a financial adviser gives you the chance to pause, look at your whole situation and to see whether the dreams and ideas you have for retirement can now come to fruition.
How we can help
Zoe Till is an Associate and Independent Financial Adviser in our expert Investment Management team.
If you would like any advice in relation to reviewing your pension and savings, or any related subjects, please get in touch with Zoe or another member of the team in Derby, Leicester or Nottingham on 0800 024 1976 or via our online form.