What is the minimum pension age

By Aharon Deans

Pensions and the govt.

There have been many state annuities of sorts since 1906, although the objective has long been to supply a basic revenue to allow an individual to survive instead of to guide the life to which they'd aspire.

State allowances operate on a 'pay as you go ' basis, which suggests that today's taxpayers effectively pay the pensions of today's pensioners; there are no investment funds set aside to provideprovide the benefits.

This means there is always pressure on central authority spending on pensions, which must always be balanced against other wishes. This problem has been amplified by increasing survival expectancy.

When state allowances were initially introduced, the average man would be considered relatively fortunate to live long enough to draw his annuity; if he did survive to pensionable age, he could expect to draw it for about one or two years. Today's pensioners enjoy a far longer, healthier and more aspirational retirement, roughly drawing their pension for in excess of 20 to 25 years. As well as providing state allowances, the govt is accountable for creating annuity legislation, which includes setting out the types of pension available, the tax treatment of pensions and, more recently, the introduction of auto enrolment into the workplace annuities.



The state minimum pension age has increased for most people, especially if they happened to be younger, i.e. Under 40 years of age. ?Individuals that forecast to retire at 65, might be likely to be surprised when they discover the state pension age has increased to 68 in some circumstances.



Females have been most influenced by this, as historically, their annuity age was 60.

If you have any questions regarding pensions or financial advice, it is always recommended to seek expert fianancial advice from a financial adviser, who can put you on the right path for your financial future.

About the Author:

Early Pension and Early Retirement are key issues looked at by My UK Pension Plan, an online service which connects individuals with Financial Advisers