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As the Chancellor George Osborne delivered his Autumn Statement, millions learned today they will have to work for longer before they collect their state pension. David Austin, Managing Director at Friendly Pensions comments on the announcement that people now in their 40s will not get a state pension until they are 68, whilst those in their 30s will have to wait until they are 69.
“The raising of the age at which retirees will be able to obtain their state pension should send a warning shot to all those people who currently have minimal or no pension plans in place. The introduction of Automatic Enrolment will go some way towards minimising the impact of inadequate pension planning but many employees are contributing woefully low amounts to their pensions or in many cases nothing at all. Too many young people believe that retirement is too far off to worry about saving for, the reality is that the younger you start saving the easier it is to build a decent pension fund. For those workers who opt out of their employer’s workplace pension scheme, the future could look very bleak.” |
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