The outcome from the recent Labour conference will be pleasing to future pensioners as it looks like the State pension age will remain at 65. The Government has also said that those wishing to work past the age of 70 will not have retirement forced upon them. In fact, lump sums are being offered to people wishing to defer their State pension.
Our View
Whilst the Government seems to have taken on board the views that State pension age should be increased to 70 or even 75, they are standing firm for the moment. Could it be the pending general election?
We would also urge caution when thinking about deferring State pensions and banking a lump sum for the privilege.
Whilst the temptation of a lump sum might be appealing, it could be less than you would have received in State pension over the term you deferred it!