The upcoming increase to the state pension retirement age is prompting thousands to postpone their retirement as the number delaying hits record highs. The latest figures indicate that men and women are now retiring at around 65 and 64 years old, respectively.
This trend is set to continue as the state pension age is scheduled to increase imminently to 67 between 2026 and 2028. Alistair McQueen, Aviva’s head of saving and retirement, commented: “The average age of exit from the labour market has hit a new high, since recent records began in 1984.”
He added: “The average age of exit for a man has risen to 65.7, from 65.3 years. The average age of exit for women has risen to 64.5, to 64.1 last year. Our retirement age is often linked to the age at which we can access the state pension.”
McQueen also noted: “The state pension age has risen over recent years, to 66, and this has encouraged older ages of retirement. In addition, since 2011, it has also been illegal to terminate someone’s employment due to their age, and since 2015 savers have been given greater freedom in how they can access their pension savings.
“These changes have supported a different approach to retirement,” McQueen stated. “One of the most powerful levers we can pull to fund our longer lives in retirement is to work longer, with the potential for every extra year of work can add money to our retirement pot,” reports Birmingham Live.
The amount you’ll receive in State Pension payments depends on how much National Insurance you’ve paid.
If you haven’t yet reached your State Pension age (or if you reached it on 6 April 2016 or later) and you’re eligible, you’ll get the new State Pension. You’ll usually need at least 10 qualifying years on your National Insurance record to get the new State Pension.
If you have a 35-year National Insurance record, you may qualify for the full new State Pension. For the 2024/2025 tax year, the full new State Pension level is £221.20 per week.
