Retirement ages are increasing

Along with other money-saving plans, the Government have announced that they will be increasing the retirement age for both men and women, so that in around five years time the age will be 65 for women and 68 for men. This means that many people who are facing retirement might need to think about their options for retiring earlier than they expected if they do not want to work for another few years.

One pensioner said, “I understand why the retirement age has increased. It is because life expectancy has gone up dramatically in the past twenty years. Medical health care is much more developed meaning that the people that would have died of something ten years ago are now more likely to have better treatment. Our way of life has also really improved. People are living longer and the Government need to adapt to this. Now it is up to people facing retirement to be wise about what they will do with their pension pot and how to invest their hard earned money. I decided to go to the Financial Advice Bureau to find out my options.”

Many people facing retirement will need to look into the best annuity rates and quotes. Rates vary dramatically from one company to another and depend on various things such as whether or not you are a smoker, or whether you live in a poorer area. In both of these instances, the person might qualify for an enhanced rate because the company would  anticipate that they would not have to pay out for the person as long, because their life expectancy is likely to be less. To find out how eligible you are for enhanced rates, it is a good idea to go online and use an annuity rates calculator. In this calculator you input various pieces on information and the results will then be displayed.

If you decide to work beyond the state retirement age, this can also increase your annuity rates because it means that again, the pension company will not expect to pay out for you for as long as if you had retired at the state age.