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Many workers unaware of pension age changes

Many workers unaware of pension age changes

Category: Pensions

Updated: 12/08/2009
First Published: 12/08/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Employees over 50 planning to retire in the next couple of years could be in for quite a shock, as many are unaware that the minimum retirement age is set to increase from April 2010.

From that date, employees will be required to work until they are 55, but just a quarter of UK employees are aware of the rule change, according to research conducted by Aon Consulting.

Just 31 per cent of workers aged between 45 and 54 – the group most likely to be affected by the new rules – said they knew about the change in the minimum retirement age.

Furthermore, less than half (46 per cent) said they knew about the forthcoming change which will see the state age for women rise to 65, meaning many women planning to use it as their main bulk of income after retirement will have to work for up to an additional five years.

While the changes will mean many people have to face the prospect of working for longer than they had planned, it does lengthen the amount of time during which they can add to their retirement pots.

"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 state pension age," Helen Dowsey of Aon Consulting.

"Employees should double check when they are able to retire, no matter what their age."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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