Britons will need to “be proactive” with their retirement savings if the state pension age rises to 71, an expert has warned.
Last week, The Longevity Centre suggested the retirement age threshold should be raised to 71 by 2050, to pay for the state pension.
This was met with criticism from some quarters who warned of the “severe consequences” on low income households of such a proposal.
Experts are reminding working-age households to budget and review their savings as additional changes to the state pension age - which is already set to increase to 68 - may lie ahead.
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Britons are 'concerned' following the proposal to raise the state pension age to 71
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Lee Melling, a financial wellbeing expert at caba, described the proposed age increase as “concerning” but reminded people that it will push them to “be proactive” with their retirement savings.
He explained: “By seeking out available budgeting tools, professional advice and maintaining a long-term perspective, we can take steps to feel more confident and secure about our pension pots.
“But what are some of the other things that you can do to supplement your retirement income?
“We should all be able to enjoy our retirement and there are some small ways to make your money go further and boost your income later in life.”
One of Mr Melling’s first recommendations is creating a pension planning checklist which will allow households to plan their desired retirement lifestyle against their financial commitments.
Furthermore, this will encourage savers to make the necessary expenditure cuts to make their savings go further.
“Living on less money inevitably means you will have to review your lifestyle. Even small savings in your expenditure will contribute to an overall reduction in outgoings,” the finance expert claimed.
As well as this, he called on savers to look at what kind of pension plan and savings account they are putting their cash into.
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Those approaching retirement are being urged to budget and save
GETTYMr Melling added: “For those who still have time before retirement, take advantage of tax-efficient retirement savings options available in the UK such as contributing to workplace pensions or Individual Savings Accounts (ISAs).
“Consider making additional contributions, especially if you haven’t maximised your pension allowances in previous years.
“Seeking guidance from financial advisors who specialise in retirement planning can also be useful for receiving personalised advice tailored to your circumstances.”
