State pension age rises – but many Britons feel they have retired too early

World News

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State Pension age is important to millions of Britons as it is at this point they can receive the sum to which they are entitled from the government. The age at which most people will receive their pension has now officially reached 66 after incremental rises in recent years. Men and women who were born between October 6, 1954 and April 5, 1960 will now receive their pension on their 66th birthday.

While these changes were met with outrage and opposition in many parts, research has revealed many actually believed they have retired early.

A study by SunLife shared with has found a staggering 85 percent of retired people over 50 believe they left the workforce too early.

This figure then rises to 88 percent of those who are now over the age of 70.

On average, those who are retired or semi-retired believe they left the workforce two and a half years too early.

Once again, this increases to three years too early when asking those currently 70 and over.

Less than 10 percent said they had retired too late, and only five percent believe they got the timing of their retirement just right. 

The state pension sum currently stands at £175.20 per week, available to those who have put forward a certain amount of National Insurance contributions.

To receive the full state pension sum, it is usually the case Britons must have put forward at least 35 years of contributions.

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However, if a person fails to put forward over 10 years of National Insurance, they could risk losing out on the state pension sum entirely. 

NI contributions are typically built up throughout a person’s working lifetime, taken off their salary.

As a result, many people will be forward planning to ensure they have a substantial record – making them more likely to receive the full amount.

Thankfully, this can be achieved through requesting a state pension forecast from the government.

This provides insight into when a person is due to receive their state pension, how much they could be entitled to, and if they could take any actions to increase their sum. 

Simon Stanney, equity release director at SunLife, commented on the findings.

He said: “For many, the change in the state pension age comes as a big blow, but the reality is, when it comes to retiring, most of those who are currently retired wish they had waited a bit longer.

“Our research also shows that many people in their 50s, 60s and 70s are fitter and healthier than ever, so are not looking to slow down, but to keep working and try new things.

“Our research shows that one in five of people in their 60s are planning to use their property to fund their retirement.

“Downsizing is one way to release the equity tied up in your home, but our survey reveals that more than half of older homeowners don’t want to move.

“So for those homeowners in their 60s who need to boost their finances but don’t want to move, equity release can offer a solution.”

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