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Retirement and the State Pension: It's all about flexibility

Tuesday, 06 May 2014 - There is a growing appetite for a flexible state pension age

New figures suggest that an overwhelming number of Britons are aiming to have retired by the time they reach 67.

This is somewhat at odds with government plans to increase the state pension age over the next few decades, and with talks of linking the state pension age to life expectancy, it may prove even more difficult for many to retire at their desired age.

Some within the financial services industry believe that the current state pension system does not offer the flexibility that many in this country would want to have when it comes to drawing their state pension.

This has led to suggestions that a state pension ?window? might be a more appropriate solution than the current rigid system. Britons would be given a range of ages where they can choose to draw their state pension and the amount they can draw would be calculated according to when they opt to take it.

PwC, a large professional services network, believe that the introduction of a state pension window would be a natural progression from the recent pension announcements from the 2014 budget, where pensioners were given more control on how and when to use their pension savings.

The figures suggest that around 40% of people would make use of any greater flexibility afforded to them when it comes to deciding when to take their pension. A meagre 9% of those asked stated that the current state pension age would bear little significance to when they choose to retire.


Retirement and the State Pension: It's all about flexibility