SPA changes forcing retirement rethink; women hit hardest – Retirement Advantage

Written by Theo Andrew
16/05/18

More than a quarter of people aged over 50 have had to rethink their retirement plans after the change to state pension age, with women being the most affected, Retirement Advantage has said.

A survey, questioning 1,003 adults over 50, found that 28 per cent of adults have had to alter their retirement plans due to the change, effecting one in three, or 35 per cent of women.

The state pension age is increasing from 60 for women, and by November 2018 both men and women’s state pension age will be 66, eventually hitting 68 between 2037 and 2039.

Retirement Advantage pensions technical director, Andrew Tully, said: “These findings make clear the significant impact the changes to the state pension age are having on retirement plans. It’s also clear the equalisation of state pension age is changing women’s plans to a greater degree than men.”

The research found that 61 per cent of people over 50 are planning to retire one to five years later than they had planned, while 29 per cent of women said they will be planning to retire six to 10 years later than they had planned.

Furthermore, 20 per cent of women said they expect to retire with less income than they had planned, compared to 15 per cent of men.

For the women that have received a state pension forecast, 28 per cent said they have change their plans as a result, compared to 16 per cent of men.

Tully added: “It’s important that everybody approaching retirement requests a state pension forecast and consults a professional financial adviser to get a better idea of how the changes may affect them. Getting advice now is one of the best ways of ensuring your retirement plans stay on track.”

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