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State Pension Age to be automatically Linked to Longevity


Article by Fabafterfifty

How easy will it be to plan retirement?  The state pension age will be ‘automatically’ linked to rising life expectancy in future years, the Government said yesterday. We are living longer. Life expectancy for those aged 65 in 2009 was projected to be 21.1 years for men, who’d live to 86, and 23.8 years for women, who’d live to nearly 89. One in 7 of us could live to be 100. Pressure on providing state retirement benefits will be enormous.
George Osborne said in his budget speech that linking the state pension age to rapidly increasing longevity will help Britain ‘live within its means’. He has not specified how this will work.
The state pension age has already been increased to 66 with the speed of the changes having the greatest impact on women currently in their 50s.
This latest budget statement highlights that any future state retirement age may be uncertain, and that there will be mounting pressure on women to work for longer. We must ensure, therefore, that we keep our skills current to ensure that we remain employable whilst also striving to maintain a healthy lifestyle.
For those married to an older partner, the planning for retirement becomes more complex as the equalising of pension age means it is unlikely that married couples are likely to retire at the same time.

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