Changes to state pension age pushing millions to retire years later than planned

 
Josh Mines
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Pensioners are having to rethink their retirement plans due to changes to the state pension age (Source: Getty)

Changes to the state pension age are leading millions of pensioners to rethink their retirement plans, forcing nearly 2m people to retire years later than they originally planned.

Retirement Advantage polled over 1,000 people aged over 50 and found that one in four of them who were yet to retire had changed their plans in light of the state pension reform.

Of those who said they had changed their plans, 61 per cent said they would retire one to five years later than planned, while nearly a quarter (23 per cent) would be quitting work six to 10 years later.

The insurance company also found that state pension changes had impacted women worse than men, as 35 per cent of women had changed their plans compared to only 21 per cent of men.

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The proportion of women who thought they would be retiring six to 10 years later than planned was more than double than the figure for men, 29 per cent compared to 13 per cent.

State pension age used to sit at 65 for men and 60 for women. But the Pensions Act 2011 pushed the women's state pension age up more quickly to 65 between April 2016 and November 2018, with the exact date dependant on an individual's birthday.

Andrew Tully, pensions technical director at Retirement Advantage stated:

These findings make clear the significant impact the changes to the state pension age are having on retirement plans. It’s also clear the equalisation of state pension age is changing women’s plans to a greater degree than men.

‘Many over 50s are telling us they have heard there are changes to state pension ages but don’t know the details. It’s important that everybody approaching retirement requests a state pension forecast and consults a professional financial adviser to get a better idea of how the changes may affect them. Getting advice now is one of the best ways of ensuring your retirement plans stay on track.’

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