Retirement Age
Considerations For Effective Retirement Planning by Square One Financial Planning
Have you ever wondered whether you are going to have a comfortable retirement? While financial expectations and needs vary from pensioner to pensioner, effective retirement planning is crucial for a comfortable retirement. It is thus important to have an understanding of recent pension reforms, changes in life expectancy and your Retirement Options before you start Planning Your Retirement.
Changes to State Pension & Pension Age
The new, flat-rate state pension rate is deemed to be a fairer and simpler system by Pension Minister Steve Webb. The current rate of £97.65, which can be topped up with pension credit will give way to a flat rate of £140. This new rate simplifies state Pensions, will reduce the need for means testing, can help women, and low-paid workers, while also encouraging people to save more for retirement. The government is also planning to increase state retirement age to 66 for both women and men, a reform that is in accordance with increasing life expectancy, but will foreseeably hit low-paid working men the hardest.
Rising Life Expectancy
Life expectancy is rising rapidly in the UK, and has increased by 44 days in just the last year. A child born in 2012 will on average live over 90 years, and more than 15% of the current UK population can expect to live until their 100th birthday. This rapid increase in longevity will continue to have a huge impact on public policy, including state pensions and retirement age. Although the state pension age is increasing, expected lifespan is also rising, so pensioners will have to plan for an increasingly long retirement. This means that Financial Planning For Retirement is becoming essential, and surviving on just the state pension for the last 10-20 years of your life or relying on your children for financial support are not the most ideal situations.
Plan Well Ahead
Starting to think about your retirement finances early enough is a crucial first step. While taking care of your family, paying for your children
