Ask the average man in the street when they think they will draw a state pension and the majority will say 65. If they are aged less than 50 then they are wrong ! The government has already adopted Lord Turner’s proposals from a major review in 2005 so the age at which people can claim the state pension will rise to 66 in 2024, 67 in 2034 and 68 by 2044.
To put the tin hat on it, so to speak, Lord Turner recently stated that he wished he had been more radical and recommended increasing the state retirement age even further.
When you combine his informed thoughts on the matter with increased life expectancy across the board and the enormous debts which future governments have been saddled with following the bank bailouts last year, the future for state pension retirement age can surely only go in one direction. The state pension retirement age need to go up, sooner and faster than current proposals. How many politicians do you think will admit to that before the next election ?
By having a mere five different pensions ministers over the last 18 months the career politicians have clearly spotted that this role is a poisoned chalice, equivalent to the old days of being appointed as the Northern Ireland minister.
And while we’re at it, as nearly all pension actuaries in the private sector are coming to the conclusion that final-salary pension schemes are not sustainable, how come the public sector are not coming to the same conclusions ? A vested interest ? Surely not !
The state system needs a thorough overhaul if it is going to be fit for purpose, not like the tinkering around that A-day delivered in the private pensions arena. Who’s going to have the guts to make it happen, before it’s too late ?
In the meantime, start saving !
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