The state pension age in the UK is currently 66, but high interest rates, soaring inflation pushing up energy and food bills coupled with economic uncertainty mean many Britons may not be able to afford to retire at this age.
The state pension increased by 10.1 percent in April in line with inflation due to the triple lock guarantee. Some 12 million pensioners are set to see a bumper increase next year after Prime Minister Rishi Sunak said he is “committed” to protecting the policy.
But with the full state pension currently giving out £10,600.20 a year and the basic state pension providing just ££8,122.40 a year, the amount is not enough for many to warrant stepping back from employment.
An annual pension income of at least £12,800 is needed to “live with dignity” in retirement, according to the Pension and Lifetime Savings Association. The economic conditions mean that more people are having to dip into savings or put retirement plans on hold in order to boost their income.
Research conducted earlier this year by Censuswide on behalf of wealth manager Charles Stanley, showed that two in five Britons, 39 percent, expect to have to work full-time past the state retirement age.
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Speaking about the results, Lisa Caplan, director of Onestep Financial Planning at Charles Stanley, said: “Retirement is most certainly a milestone that many look forward to – whether it’s planning to relax, travel, enjoy a hobby, or spend time looking after grandchildren.
“While exciting, it can also feel daunting, particularly when it comes to planning to have the retirement you desire. Unfortunately, the rising cost of living has added a new challenge to the retiree landscape.
“Many will have had the rug pulled from under their feet, with hard-earned savings being eaten away by inflation, or needing to support more day-to-day living, meaning contributions to retirement pots diminishing.”
So what about YOU? Will you be able to afford to retire by state pension age? Vote in our poll and leave your thoughts in the comment section below.
