UK Pensions Can Change Effectively In 2017: For Good Or For Bad

Retirees could go for a final salary pension or ultimately put it off for a while to get higher cash payments — if they can handle it. Other factors, including charges caps and further “radical” changes to the state pension in the form of removing the “triple-lock” system in favour of existing retirees are just some of the possible futures for UK’s pensions. It is possible state pension might be available for younger ages than the standard 55 and a half.

This year, it is possible that the government could allow people younger than usual to get their pensions. Despite the smaller payouts, the possibility is still there. However, that is only half of Aegon’s respondents agreeing to the possible new rules in 2017 for pensions. The UK’s existing pensioners are still benefitting from “defined benefit” pensions due to a “triple lock” system that the UK’s Labour party backs heavily.

According to Aegon UK’s Pensions Director Steven Cameron, those approaching retirement have different needs and circumstances — many of which will benefit through a new “flex” system that could accommodate the varieties involved. Their survey of 2,000 people indicates that the state pension issue is still hotly debated among Britons.

This year’s spring will see the UK government reveal the results of its state pension review. The review would indicate the possible alternatives to a state pension age — including the possible younger age for pension withdrawals. Pension have become a big issue after top UK companies including Tata Steel and BHS revealed their huge pension deficits for their employees in the last year.