Finance experts have warned that proposals to speed up the increase in the state pension age to 68 could leave millions struggling to maintain a decent standard of living. At present, the UK's state pension age is set at 66, with plans to raise it to 67 between 2026 and 2028, and then to 68 between 2044 and 2046.
However, there are growing rumours that these changes may be implemented earlier than planned. The London School of Economics' (LSE) Centre for Economic Performance recently suggested that the state pension age should be raised to 68 "as soon as possible".
Other analysts have proposed that the figure may need to increase further to 70 to remain financially viable for the nation. Yet, any rise would mean that many elderly individuals may pass away before they can claim their state pension.
Others may be compelled to continue working in physically demanding jobs despite existing health issues. Mark Screeton, CEO at SunLife, cautioned that accelerating the increase in the state pension age could deal a severe blow to the millions who have minimal or no private pension schemes.
He stated: "According to our Life Well Spent report, one in four (24 percent) of retired people are coping on the state pension alone currently £11,502 a year while 28 percent of over 50s not yet retired have no pension savings apart from the state pension. According to Retirement Living Standards an individual needs an annual income of £14,400, for a 'minimum standard of living' while for a 'moderate' standard of living, an income of £31,300 is needed.
"This means that even after April's 8.5% hike, the current new state pension still falls well short of what is needed for pensioners to get by, let alone live well. Therefore, if the state
poverty
Schools
wellness
UPS
Career
experts