State pension age rises force retirement plan changes - 'vital' funding guidance issued
State pension ages have been steadily rising in recent years as state legislation pushes retirement ages upwards. Currently, most people will reach their state pension age on their 66th birthday but this will rise over the coming years.
Canada Life detailed changes to state pension legislation have impacted the retirement plans of homeowners over 40, with only a quarter saying they will retire at their state pension age.
Nearly a third (31 percent) of respondents said they plan to work beyond their state pension age, with this increasing to 50 percent of the over 60s.
Equally, 34 percent plan to finish up work early and retire before their nominated state pension age. One in ten (11 percent) said they had already stopped working before their state pension kicked in.
When asked what they expect their main source of income to be in retirement, nearly a third (28 percent) of homeowners aged 40 and above expect the state pension will provide the “bedrock” of their income (22 percent for men vs 36 percent for women), even with the full state pension currently standing at just £179.60 per week, or £9,350 per year.
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