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Who wants to retire anyway…

By Sara Neidle
08 October 2020

By Sara Neidle

I have worked out that I will be able to retire on 23rd December 2055. This is based on current calculations, but it is inevitable it will be later…

This week, it was announced that men and women born between 6 October 1954 and 5 April 1960 will start receiving their state pension on their 66th birthday. For those born after, there will be a phased increase in state pension age.

This has sparked much debate as many people rely on their state pension in retirement. For those nearing retirement, it is currently very unclear as to how much they will receive and when that will be. It is a fact that the state pension will rise and continue to do so. It also comes as the Chancellor, Rishi Sunak, announced this week that the triple lock guarantee will not be removed in the near future.

We have also seen calls for people to be given the option of drawing their state pension earlier but on a reduced income. Many have argued that there is a strong case to allow early access to state pensions because healthy life expectancy across the country varies between regions, social groups and occupation. Those who want to defer their state pension and keep working can delay their state date and receive a higher pension. It is argued that similar flexibility should be afforded to those who want to have access to their state pension earlier. Although, this does not impact on people like myself right now, it will at some point. As a result, young people will need to think ahead and start making long-term financial planning decisions. With the average life expectancy increasing, it is inevitable that the state pension age will have to rise. This is the harsh reality for younger people. I know that I need to take more responsibility now, if possible, to review my finances, save more and build up my own retirement pot. The question should not be when will I be able to retire, it should be how much should I be investing to save for my retirement?