The Undeniable Devastating Consequences of Increasing State Pension Age

The government plans to raise the state pension age for current workers in 2037 and 2039 gradually to meet its goal to increase the state pension age of 67 to 68. The government accelerated its original plan to introduce the changes by 2044 to 2046.

Royal London Life Policy Director Steve Webb said the government’s decision to increase the pension age allows people of working age not to face huge taxes upon withdrawing their pensions.

Working UK employees between the ages 39 and 47 would see their pension ages rise from 67 to 68 as the last few years of their professional life approaches. Today, the state pension age is still 65 for males and 64 for females.

The state pension increase is yet to be law; it has only been the Conservative party’s intention. The government intends to set the new timetable by 2023, before the next elections in the United Kingdom.

According to AJ Bell Senior Analyst Tom Selby, the Tories’ decision to increase the pension age is just “kicking the can down the road.” It is a difficult decision and at some point, UK’s politicians need to make a defined decision for the greater good.

The Labour Party did not comment on the proposal, but said it would investigate pension age increases beyond 66 and the possible effects on the retiring population of the time.

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