Experts and seniors alike are very worried about the UK’s new plans to raise the age at which you can get your state pension. Already, it is hard for retirees to make ends meet, and changes to the law could make things even worse for millions of people.
It might become harder for older people, especially those who do not have personal savings, to meet the basic needs they need to live.
There are talks in the government about raising the retirement age as a way to fix the state pension system’s money problems.
The planned pension raise for 2026–2028 has been pushed back to 68 years earlier than planned, according to some studies. A big chunk of the people would be hurt by this change, especially those who only get the state pension.
The dangers of an earlier retirement age increase
Sun Life, a financial company, says that raising the retirement age could put millions of Britons out of work because many of them do not have any savings.
About 28% of people over 50 do not have a private pension, which puts their financial security at risk. Even though the state pension has gone up, for many seniors it is still not enough to cover their basic needs.
For a person to keep a minimum standard of living, they need to make around £14,400 a year. But the current pension barely meets this level, so even with raises, retirees still have a hard time making ends meet.
Some studies have also suggested that the retirement age should be raised to 68. This could make it harder for older workers to keep working, especially those with health problems or who do physical work.
An even more extreme idea is to raise the retirement age to 71. This is a lot older than what is currently planned and could have even worse effects on people who work physically demanding or low-paying jobs and often can not keep working at those ages.
| Year | Pension Age |
|---|---|
| 2024 | 66 years |
| 2026-2028Â (proposed) | 67 years |
| Future changes (possible) | 68 years |
| Further Future (possible) | 71 years |
The present and proposed future increases in the state pension age are shown in this table. These changes could have big impacts on people who are relying solely on the state pension for their retirement.
What alternatives exist to ensure a decent retirement?
According to estimates, the government’s plan could save the public purse up to £6.1 billion in the short term. But in the long term, it could hurt the most desperately poor retirees.
Experts say the government should try to find a more balanced solution that takes into account both the short-term economic gains and the quality of life of people who will be retiring in the future.
Instead of rushing to raise the retiring age, it might be better to get people to save money on their own and give those with less money more from their state pensions.
This is the only way to make sure that retired people have the kind of life they deserve after working their whole lives.
Also see:-The Social Security Administration will increase the average payment by $50 as of January 1, 2025