Six in ten 50-year-old employees say they’re fearful concerning the upcoming rise within the minimal pension age, in response to a brand new examine.
The Authorities will improve the minimal age employees will be capable to entry their pension financial savings from 55 to 57 in 2028.
Whereas the transfer has been flagged for some years, 63% of 50-year-old employees say they’re involved concerning the change, with many ill-prepared.
One in 5 employees (21%) plan to entry their pension financial savings earlier than they turned 60.
Solely 35% of employees aged 50-59 say they have been conscious of the present minimal pensions age (55).
Office pension scheme supplier TPT Retirement Options, which carried out the analysis, mentioned its survey of greater than 2,000 50-59-year-olds revealed widespread concern concerning the rise within the minimal age to take pension advantages.
The Authorities handed laws in 2021 to extend the minimal pension age from 55 to 57 in 2028.
The analysis additionally revealed widespread ignorance about pension ages, with most employees aged 50-59 unaware of the traditional minimal pension age. Simply 35% of employees on this age group accurately recognized that the present minimal pension age is 55. Half (50%) of those employees believed the minimal age was 60 or older.
TPT’s analysis additionally revealed that greater than three in 4 employees (76%) of their 50s have been fearful about any potential improve to the state pension age within the 2030s. Underneath present plans the Authorities will improve the state pension age to 67 in levels between 2026 and 2028 after which to 68 between 2044 and 2046.
Amongst employees of their 50s solely 15% are presently planning to retire on the age of 68 or older.
Simply over seven in ten (73%) are planning to retire earlier than they attain 68 and 74% of employees of their 50s say that they are going to depend on the state pension as an necessary supply of revenue in retirement.
Greater than half (51%) of these fearful about a rise within the state pension age consider they need to retire at 66, as “they’ve paid into the system for lengthy sufficient.” Almost half (47%) count on to work for longer as they can’t afford to retire with out the state pension.
David Lane, chief government of TPT Retirement Options, mentioned: “Our analysis exhibits the diploma of concern many individuals of their 50s have about will increase to the minimal and state pension ages.
“Given the variety of folks relying on the state pension as their main supply of revenue, many may very well be successfully compelled to work for longer. These with bodily demanding jobs could discover working for a further two years notably difficult.”
TPT Retirement Options was established in 1946. It serves over 2,600 organisations and greater than 425,000 members. The enterprise is run as a not-for-profit organisation for the advantage of its members and has property of £10.3 billion (as at 30 September 2022).
• Outcomes primarily based on a Censuswide Survey, on behalf TPT Retirement Options, of two,009 employed 50-59 12 months olds. Survey accomplished between 27 February and 1 March.