State pension age increase 'is coming too soon'

By Tom Farley, Mon 9 Aug 2010 - Published in Pensions

The government needs to give people more time to prepare for the increase in the state pension age for men to 66 in 2016, it has been suggested.

According to the National Association of Pension Funds (NAPF), many of those in their mid to late 50s will not be able to change their retirement planning fast enough to account for a year without the state pension.

The organisation also claimed that people who are partially or fully retired in their 50s could be hurt especially hard by the proposals.

NAPF chief executive Joanne Segars commented: "Many people now in their mid to late 50s have made quite detailed retirement plans, and they may be unable to recalibrate their savings to cover the state pension they will lose. Six years is not enough."

She recommended that both men and women should see their pensionable age increase to 66 by 2020, in order to give more time for people approaching retirement to increase their savings.

Recent research by Confused.com found that 83.9 per cent of people are baffled by pensions, making them the most misunderstood financial product.

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