13 August 2009
According to Aon Consulting many UK workers are unaware of the
upcoming change in minimum pension age from 50 to 55. The minimum
age is due to rise to 55 from the 6th of April 2010, originally
having been passed into law in the Finance Act 2004. The research
revealed that only a quarter of UK workers are aware of this
change.
Only 24% of the 4046 surveyed and 31% of workers aged between 45
and 54 (the group most likely to be affected by the changes) were
aware of the increase to the minimum retirement age.
Similarly only 46% knew that the state pension age for women is
rising to 65 in 2010.
Helen Dowsey, principal at Aon, said: "These findings have clear
implications for Britain's workforce and their employers. It is
disappointing, but not entirely surprising, that so few people are
aware of changes to the minimum retirement age and the State
pension age.
"Employees should double check when they are able to retire, no
matter their age. This applies to both the State pension, but also
to many private pensions that have 'Normal Retirement Ages' at
which members can start to draw upon their savings. We have seen
massive legislative changes to pensions and unprecedented
volatility in pension investment: the workforce needs to
forward-plan for retirement to understand and respond to these
changes and market conditions.
"Employers must not only help their workforce understand the
implications of retiring but also review and prepare for
alterations to their own budgets. With an older workforce, benefits
costs are going to rise and employers must be prepared."
