Changes to State Pension Age - July 2017
Ray McHugh, independent financial adviser Barnet and member of the North London financial planning team writes: ‘The July announcement by the Government of its intention to act sooner than expected to raise the pension age to 68, for certain age categories (seven years earlier than planned) was not a complete surprise to me. The announcement means that many people aged between 39 and 47 will have to wait an additional year before they are able to draw their state pension.
I thought it was interesting that the news was announced by the Secretary of State for Pensions, David Gauke, just before Parliament broke up for its seven week summer recess, and on the day that the BBC revealed how much it paid its top talent.’
Ministers say that the move will save the Treasury £74 billion and is unavoidable because demographics confirm that we are living longer. The decision does not have the support of the opposition or the SNP, and drew criticism from such charities as Age UK. Age UK said the government was ‘picking the pockets of everyone in their late 40s and younger, despite there being no objective case in Age UK’s view to support it at this point in time.’
Ray McHugh, independent financial adviser Barnet and member of the North London financial planning team said:
'Our independent financial advisers would recommend that individuals review both their state pension and their own individual private pension position as part of their retirement planning. Knowing when you are going to receive your state pension would certainly, in our view, be very sensible.’
You may also be interested in reading:
Richard Porter, independent financial adviser St Albans: Reaching retirement – your choices,
Daniel Stansall, independent financial adviser Barnet: Managing your income in retirement,
Simon Hawker independent financial adviser St Albans: When it pays to seek independent financial advice.