Planning for your retirement is difficult at any time, but is being made even more so by a government that keeps moving the goalposts.
Iain Duncan Smith had previously said that the retirement age should go up to 66 by 2016, but over the weekend has told the press that even this fast rise could be accelerated.
In order to “sell” the idea, IDS pointed out that by deferring your pension by just one year an older person’s pension pot could be increased by up to ten percent. This is a significant factor at a time when the state pension is famously tough to live on.
IDS has made great efforts to make it clear that he wants to help older people back into work, and intends to give training and support to help them. However, employers are reluctant to give up the idea of a default retirement age.
If you are approaching retirement, what are the considerations you might bear in mind if you are thinking about whether to give up work?
Can you afford to retire?
This will no doubt be at the top of your list. The prospect of giving up a wage to live on a pension can be scary, particularly in a world where the costs of accommodation, food and utilities seem to be going up all the time.
What about a part-tirement?
Of course, as long as your employer agrees, there is a middle way. A recent survey showed that more and more older people are opting to work part time and draw a pension, thus easing their way into retirement.
What will you do with yourself?
Finally, you may wish to consider what you will do with yourself when you retire. Some older people have been dreaming about this for years – decades even. Others may be terrified by the prospect of all that free time on their hands.
