At what age should you be allowed to retire?
As the Chancellor today reads out his Autumn statement one of the main points that will stand out to many people is the increase in the state retirement age from 65 to 68 years old being brought forward to the mid-2030’s, with the possibility of it rising even further by the late 40’s. (Is it just me or does it seem a little weird talking about the 40’s in the future tense?). I know that the year 2046 may seem a long way off right now but the move will affect millions of people in their thirties and forties and there is no guarantee that these dates won’t be moved even further forward in the coming years. With this in mind then it did get me to thinking, what age is it reasonable to expect a person to work until?
In the Autumn statement it was mentioned that the rise in the state pension age was being based on the average age to which people are now living, but does that make us any more capable of working so late on in life though? Yes there are some very fit and healthy spring chickens out there, running marathons into their 90’s. By and large though, I’d say that when most people hit 60 they really look like they’re ready for a well earned rest, and who can blame them after so many years of hard work, providing for themselves and their families. Of course if you are retirement savvy – or should we say retirement aware – then you will hopefully be in a position to take matters into your own hands and orchestrate your own early retirement based on your savings and investments. With many people struggling just to get by at the moment though, the percentage of people who will realistically be in a position to do that may well be smaller than in years gone by, with many relying on their state pension to make retirement a viable option.
When taking all of this into account then one thing is for sure. If you haven’t already started thinking about or planning how you are going to fund your retirement, now might be a really good time to start thinking about and planning for it. With the average age of the population continuing to rise the situation doesn’t look as though it’s going to be getting better any time soon. Do you really want to be solely reliant upon a state funded pension for your survival during retirement?
Anyway, back to my original question. At what age do you think you should be eligible to receive your state funded pension or more to the point, at what age do you think it’s realistic to be expected to carry on working until? Do you have any plans in place to allow you to beat this rise in pensionable age and retire when you see fit to do so? When I look at my parents and the state of their overall health, I’m just happy for them that the current proposed dates won’t affect them. For those of us who are in their mid 40’s and under though, working until we’re almost 70 is now a very real proposition for us, unless we think ahead and plan things wisely.