Pensions and Retirement News and Discussions

[wjfox]

Increase in UK state pension age to 68 could come eight years early

Wed 15 Dec 2021 11.46 GMT

Millions of people born in the 1970s may have to wait longer to collect their UK state pensions if a government review, which was announced this week, recommends bringing forward plans for a retirement age of 68.

The state pension age rose to 66 last year, with two further rises planned, meaning that by 2046 those born on or after April 1977 would need to wait until 68 before they can draw the benefit.

However, the review will look at bringing forward that change by eight years, so that the increase is phased in between 2037 and 2039.

[...]

Becky O’Connor, the head of pensions and savings at the website interactive investor, said: “The idea of a long, enjoyable retirement seems set to be consigned to the history books.

“It’s no wonder today’s younger workers have little faith in the state pension being there for them at all when they stop work, with many thinking they’ll end up working forever.”

https://www.theguardian.com/money/2021/ ... rly-review

[Time_Traveller]

Millennials and Gen Z beware: People in their fifties have serious pension problems. You could be doomed

Friday 02 August 2024 06:00 BST

Whenever a letter arrives emblazoned with the logo of my pension provider, I feel wracked with anxiety, promise myself I’ll read it later… then shove it in the nearest drawer and forget all about it. I can’t be the only person who’s guilty of doing so. Unless you’re very au fait with your personal finances, this piece of life admin tends to be one part boredom, two parts confusion.But writing off our retirement plans as tomorrow’s problem might mean we’re making an already tricky situation worse for ourselves.

Earlier this week, a report from the think tank Phoenix Insights found that people in their forties and fifties are not saving enough and will have “a nasty shock” when they reach retirement, with just one in seven putting aside enough to avoid a drop in their living standards. But if Gen-Xers, generally considered to be more comfortable financially, are facing a gloomy picture, what is the outlook like for younger generations – the ones who are now bearing the brunt of the cost of living crisis and a shocking property market? And is there anything that they can do to ameliorate it – other than bracing themselves for clocking in for work on Teams or Slack (or whatever equivalent we’re using by then) in their seventies and beyond?

In the UK, if you have worked for a certain period of time, you’re entitled to some level of state pension (exactly how much you receive depends on how many years you have paid National Insurance). But “we’ve no idea what the state pension might look like in 40 to 50 years time for those currently in their twenties and thirties”, says Ross Leckridge, a chartered financial planner at Aberdein Considine. The age for eligibility might well increase even further (it’s currently set at 66 but will increase in two years’ time). And, Leckridge notes, there’s also the question of “will it be worth less, in real terms, than it is now?” Our state pension is already considered less generous than many other developed countries. The maximum amount currently works out at £221.20 a week – that’s around £11,500 a year.

Most people increase their retirement income with a workplace pension – but the schemes many of us are paying into are different from the ones that might have cushioned our grandparents’ retirement. Previously, most policies promised a specific salary during your retirement (based on your earnings before you stopped working), but that’s no longer the case. Now, it’s more common to accumulate funds for your pension throughout your career: you and your employer pay in money during your working life. The former option would guarantee an income for life; the latter depends on how much you put in, and how the investment performs. This change has shifted the onus for sorting out retirement onto the employee. As Leckridge puts it: “New generations of pensioners will need to take responsibility for managing their own pensions throughout their retirement to make sure they don’t run out.”

Young people will have benefited from automatic pension enrolment for much of their working lives. This was introduced in 2012, and means that anyone aged 22 and over with an annual salary of at least £10,000 will join their workplace pension scheme by default. But as the cost of living has skyrocketed over the past couple of years, it’s hardly a surprise that many simply don’t see their pension as a priority: instead, those on an entry-level salary need every last pound of their wages (and paying, say, a tenner a month into a pension pot feels a bit futile).

https://www.independent.co.uk/life-styl ... 88931.html

I decided to make use of this thread again since nothing has been posted on it since 2021, but please enjoy this opinion piece.

[Time_Traveller]

China raises retirement age for first time since 1950s

48 minutes ago

China will "gradually raise" its retirement age for the first time since the 1950s, as the country confronts an ageing population and a dwindling pension budget.

The top legislative body on Friday approved proposals to raise the statutory retirement age from 50 to 55 for women in blue-collar jobs, and from 55 to 58 for females in white-collar jobs.

Men will see an increase from 60 to 63.

China's current retirement ages are among the lowest in the world.

According to the plan passed on Friday, the change will set in from 1 January 2025, with the respective retirement ages raised every few months over the next 15 years, said Chinese state media.

https://www.bbc.co.uk/news/articles/c62421le4j6o

[wjfox]

State pension age could rise again after cost of triple lock soars

July 21, 2025

A review that could lead to an increase in the age at which people can retire and receive their state pension will be launched today amid pressure over the cost of the triple lock.

The State Pension Age Review, which is required by law, will report back by March 2029 and could also herald changes to the current timetable, which will see the age rise to 68 between 2044 and 2046.

It is already scheduled to increase from 66 to 67 between 2026 and 2028.

But The i Paper understands the current Government is unlikely to make any decisions on further increasing the state pension age, or the timetable, before the next election, which is due in 2029. Ministers want to consider any changes in the round with a wider pensions review.

It means the cost of the state pension and the triple lock (the guarantee that the state pension rises in line with whichever is highest between inflation, wage increases or 2.5 per cent each year) could become a major flashpoint when voters next go to the polls.

https://inews.co.uk/news/politics/state ... rs-3816314

[weatheriscool]

Social Security Administration announces 2026 COLA benefit increase of 2.8% -- what it means for you

Source: CNBC

Published Fri, Oct 24 2025 8:48 AM EDT Updated 7 Min Ago

The Social Security cost-of-living adjustment will be 2.8% in 2026, the Social Security Administration said on Friday. Social Security retirement benefits will increase by about $56 per month on average starting in January, according to the agency.

The COLA provides an annual adjustment to both Social Security and Supplemental Security Income to help ensure those benefits keep up with inflation. About 75 million people receive benefit checks from those programs. But for beneficiaries who rely on those payments to cover essential expenses, the size of this year's COLA might not ease their struggle with higher prices...

The Social Security cost-of-living adjustment for 2026 is in line with expert estimates that had projected a 2.7% to 2.8% boost to benefits.

Over the last 20 years, the Social Security COLA has averaged 2.6%, according to The Senior Citizens League, a nonpartisan senior group. The cost-of-living adjustment was 2.5% in 2025.

Read more: https://www.cnbc.com/2025/10/24/social- ... rease.html