Peoples’ retirement plans are being impacted by the changes brought to the state pension age. Many are forced to stay in work to be able to secure a comfortable retirement.
State Pension Age Hike Delays Retirement for Many Born Before this Date
By Lydia Amazouz
Published on 2 October 2024 15:53
Thousands of older workers are being encouraged to retire later in life amid a noticeable state pensioner increase. Peoples' retirement plans are being affected by the changes brought to the state pension age. Many are forced to stay in work to be able to secure a comfortable retirement.
The Average Age for Retirement has Known a Significant Increase
According to recent data, in 2024 the average age someone leaves the workforce to retire has increased to reach unprecedented heights since the records started. The typical age people retire at now is between 65 and 64 years old for both men and women, reports BirminghamLive.
The age threshold is set to rise again to 67 between 2026 and 2028. Alistair McQueen, the head of saving and retirement at Aviva, stated: “The average age of exit from the labour market has hit a new high, since recent records began in 1984.
“The average age of exit for a man has risen to 65.7, from 65.3 years. The average age of exit for women has risen to 64.5, to 64.1 last year. Our retirement age is often linked to the age at which we can access the state pension.
“The state pension age has risen over recent years, to 66, and this has encouraged older ages of retirement. In addition, since 2011, it has also been illegal to terminate someone’s employment due to their age, and since 2015 savers have been given greater freedom in how they can access their pension savings.”
McQueen went ahead to say: “These changes have supported a different approach to retirement, one of the most powerful levers we can pull to fund our longer lives in retirement is to work longer, with the potential for every extra year of work can add money to our retirement pot.”
The New State Pension: Eligibility and Benefits
The amount of State Pension payments you get is based on how much National Insurance you have contributed. If you haven’t attained your State Pension age yet or if you reached it on 6 April 2016 or after and are eligible, you’ll receive the new State Pension.
At least 10 qualifying years are required on your National Insurance record to qualify for the new State Pension. If you have a 35-year National Insurance record, you can be eligible for the full new State Pension, which is currently valued at $221.20 per month.