State pension age changes forcing 1.8 million over 50s to re-plan retirement
These findings make clear the significant impact the changes to the state pension age are having on retirement plans.
- 1 in 4 people aged 50 and over and yet to retire have changed retirement plans in light of changes to state pension age (35% of women vs 21% of men)
- 61% of people aged 50 and over say they will retire 1-5 years later than they planned (55% of women vs 70% of men)
- 23% of people aged 50 and over say they will retire 6-10 years later than they planned (29% of women vs 13% of men)
Changes to the state pension age have forced huge numbers of people aged 50+ to rethink their retirement plans – leaving nearly 2 million people set to retire many years later than planned or with less income than they anticipated – according to new research1 by retirement income provider Retirement Advantage.
The research found that two thirds (66%) of people aged 50 and over are aware of the changes being made to equalise state pension age, with more than 1 in 4 (28%) of them having altered their retirement plans as a result.
But the impact is starker for women than men. Only 1 in 5 (21%) of men have changed their plans, but more than 1 in 3 (35%) women are doing so.
Importantly, the shift is also hitting women much more acutely in terms of how much they are altering their plans. Nearly 1 in 3 (29%) women who are changing their plans say they will retire six to ten years later than they planned – more than double the proportion of men (13%) doing so. Additionally, 1 in 5 women (20%) say they will retire with less income than they had planned, compared to 1 in 7 men (15%). In contrast, 69% of men who are changing their plans think they will retire 1-5 years later, compared with 55% of women.
Andrew Tully, pensions technical director at Retirement Advantage, said: ‘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.’
The trend of women being more likely to change their plans than men also remains where people have received state pension forecasts. More than 1 in 4 (28%) women who have received a state pension forecast have changed their plans as a result, compared to 1 in 6 (16%) men. However, nearly two thirds of women (59%) either haven’t requested a state pension forecast, don’t know what it is, or how to get one.
Anyone can use the online state pension forecasting tool by going to the gov.uk website.
To find out more about how the over 50s are planning for retirement, download a copy of the latest ‘Retirement Sentiment Index: Surviving Market Volatility’: http://www.retirementadvantage.com/adviser/support/reports/retirement-sentiment-report-surviving-market-volatility
- Source: Censuswide polling on behalf of Retirement Advantage, conducted online between 6-9 March 2018, surveying 1,003 UK adults aged 50 and over who are not retired, and have a defined contribution or individual pension in place.
- State pension age is increasing for women and rising between April 2010 and November 2018 from 60 to 65. It will increase to 66 for both men and women between December 2018 and October 2020. It will then increase to 67 for both men and women between 2026 and 2028. Finally, it will increase to 68 which has been suggested to be between 2037 and 2039, however the Government has not yet included this in legislation.