The 2020 general election is 10 days away and one of the key hot button issues is Retirement Age and the State Pension.
In 2014, the government raised the commencement age for the State Pension from 65 to 66, leaving thousands who were contractually obligated to retire at 65 needing to sign onto Job Seekers Benefits to bridge the gap. The pension age is set to increase to 67 in 2021, and 68 in 2028 under the same plan.
However, in spite of the increase to the pension age, many politicians remain exempt from the changes. TDs and Ministers who were public servants before 2004 are entitled to retire at 50, while those who came into office later can access their pension at 65. Only those who entered public service after 2013 will have to wait for as long as most ordinary workers for their pension payments to kick in. And now, even they can choose to draw their pension when they turn 65. The gap between private and public sector pensions is only widening.
There is no doubt that General Election 2020 may have an immediately measurable effect on your State Pension. There are a number of options available to mitigate this risk:
- Challenge candidates when canvassing as to how they plan to help retirees until their State Pension kicks in.
- Keep informed! Virgin Media will broadcast a multi-party leaders’ debate on Thursday, January 30th. Be sure to tune in.
- Consider contributing to a private pension – this will help to reduce the risk of an income gap at retirement.
To discuss setting up a private pension or your future retirement planning, please contact your financial advisor. For more information on ITC self-administered pensions, email firstname.lastname@example.org.
*Please note this content is the view of the author and not of Independent Trustee Company