A finance expert has warned that the Government has sent a clear message by reviewing the pension age, and if Brits do not start saving now, they are putting their futures at “serious risk”. The Government announced this morning that it is examining the state pension, with people aged 66 and older currently receiving it. This is likely to change from next May as people will wait one more year until they are 67. The milestone is usually looked at evey six years, with the last time it happened being in 2023. The CEO of financial advisory firm the deVere Group, Nigel Green, said: “The message from Government today couldn’t be clearer: the state pension can’t carry us all.
“It was never meant to be the full solution. If you’re not saving for your future now, you’re putting your financial freedom at serious risk.” Referring to the increasing cost of the triple lock on pensions due to Britain’s ageing population, he added: “The reality is this: younger generations can no longer rely on retiring at 65. If you’re in your 30s or 40s now, you could be working into your 70s unless you take control of your financial future. That starts with saving early, saving enough, and seeking advice.”
The expert warned that 15m people are still undersaving, especially among the self-employed, low earners and minority groups.
Women approaching retirement also face a gender pension gap that leaves them, on average, with half the pension income of men, the advisor added.
“This is a wake-up call for the millions still on the sidelines,” Mr Green said. “Whatever your job, background or age – the earlier you start saving, the more options you’ll have later. It’s time to prioritise your pension just like your paycheck.
“Don’t wait for Whitehall to decide your fate. Pension policy may change, but personal action can’t wait. Take advice. Review your contributions.”
“Don’t delay,” the expert advised. “Time is your biggest ally when it comes to retirement.
“Retirement is not a deadline – it’s a destination. The sooner you start walking toward it, the better your journey will be.”
The Government has claimed that, without action, tomorrow’s retirees are “on track to be poorer than today’s”.
It added that almost half of working-age adults are still saving nothing, with low earners, some ethnic minorities and the self-employed least likely to be building up their pension pot.
Work and Pensions Secretary Liz Kendall said: “People deserve to know that they will have a decent income in retirement – with all the security, dignity and freedom that brings.
“But the truth is, that is not the reality facing many people, especially if you’re low paid, or self-employed.
“The Pensions Commission laid the groundwork, and now, two decades later, we are reviving it to tackle the barriers that stop too many saving in the first place.”
The Chancellor of the Exchequer, Rachel Reeves, said: “We’re making pensions work for Britain.
“The Pension Schemes Bill and the creation of pension megafunds mean an average earner could get a £29,000 boost to their pension pots.
“Now we are going further to ensure that people can look forward to a comfortable retirement.”