The UK does not have enough time to prepare for the rise in the state pension age for men to 66 in 2016, warns the National Association of Pension Funds (NAPF).

The Government’s plans to increase the retirement age so soon could mean those in their mid to late 50s who have already made retirement plans are unable to change their savings and private pensions to make up for the loss of a year’s state pension.

The NAPF said those in that age group who have already fully or partly retired could be hit in particular.

The NAPF has instead suggested that the pensionable age increase to 66 by 2020 for men and women, therefore granting more leeway for those approaching retirement to boost their savings.

“Retirement ages do need to go up, but the Government is being too hasty,” commented Joanne Segars, NAPF chief executive. “Lifting the state pension age for men to 66 by 2016, or even earlier, is simply asking too much.

“Many people now in their mid to late 50s have made quite detailed retirement plans, and they may be unable to recalibrate their savings to cover the state pension they will lose. Six years is not enough.”

Segars also addressed the fact that the rise in retirement age for men presents a gender discrimination issue, as men will be facing the higher retirement age of 66 for four years longer than women.

“Gender discrimination is a big issue in the workplace and many employers feel very uncomfortable about the unequal nature of the current plans. The pensionable age should be raised to 66 in 2020 for both men and women. That will give people at least ten years to plan, and will protect people in their mid and late 50s,” she said.

Share Story: