Citizens of the UK have been told that retirement has just got further away yet again, but who is looking forward to retirement ‘right’.
Anyone in the UK currently between the ages of 39 and 47 is now going to have stay in work for another whole year before they can even think of collecting their state pension.
DevDosh Ltd found that currently the government kindly announced today that the UK state pension will be brought forward by seven years, so anyone aged between 39 and 47 will only be eligible for a state pension when they reach the ripe old age of 68 before they can draw the paltry sum of 155 GBP per week or a depressing 8000 GBP per year.
The right honorable David Gauke MP said:
“I want Britain to be the best country in the world in which to grow old, where everyone enjoys the dignity and security they deserve in retirement,” he said. “Since 1948 the State Pension has been an important part of society, providing financial security to all in later life. As life expectancy continues to rise and the number of people in receipt of State Pension increases, we need to ensure that we have a fair and sustainable system that is reflective of modern life and protected for future generations.”
He continued: “Combined with our pension reforms that are helping more people than ever save into a private pension and reducing pensioner poverty to a near record low, these changes will give people the certainty they need to plan ahead for retirement.”
The Department of Work and Pensions kindly explained that this is due to people having the audacity to live longer, when the state pension was introduced way back in 1948, a 65-year-old with average health could expect to live another 13.5 years, that figure has now risen to 22.8 years, so I guess it’s only fair that the state pension takes this into account.
Caroline Abrahams, Charity Director at Age UK, said in bringing forward a rise in State Pension age by seven years, the Government was “picking the pockets of everyone in their late forties and younger”.
She continued: “It is astonishing that this is being announced the day after new authoritative research suggested that the long-term improvement in life expectancy is stalling. For people in midlife and younger their State Pension may seem a lifetime away but the fact is that the change announced today will have a real impact on them later in life.”
Flat Rate State Pension
As far DevDosh Ltd concerned the flat rate State Pension was brought in April 2016, as a way to make the complex pension system simpler and is perceived as a fair, generous replacement for the out-going two-tier State Pension.
True to form there is a catch to the new system though, you have to qualify for the full flat rate. According to statistics only 13% of people currently reaching state pension age actually meet the criteria
So like everything else when it comes to the government if you want to have a respectable retirement at an age you can actually enjoy it you better sort things out for yourself.
If you are looking for the right investment, please visit DevDosh Ltd today.