Britons are being urged to “review other retirement benefits” following a recent proposal to raise the state pension age to 71 by 2020.
Earlier this month, The Longevity Centre recommended raising the age threshold to this level by 2050 due to rising life expectancy and the cost of maintaining retirement benefits at their current level.
This sparked outrage from pension experts and members of the public who shared their concern that it could plunge older households further into poverty.
However, some analysts are defending the proposal and outlining why it could push those preparing for retirement to “review other benefits” to supplement their income.
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Britons are being called to ‘review other retirement benefits’
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Speaking to GB News, financial expert Finn Wheatley broke down why increasing the state pension age to 71 may be a necessity.
She explained: “When the state pension was introduced in 1948, a 65-year-old could expect to live 12-13 more years.
“Today, life expectancy for 65-year-olds is around 20 more years. This dramatic change means state pensions must support far longer retirements. Raising the pension age to 71 simply keeps pace with the demographic shifts.”
According to the risk analyst, those concerned about their income later in life should track down old pension pots to rely on outside of their state-funded benefit.
Mr Wheatley added: “When it comes to supplementing retirement income beyond the state pension, there are several strategies individuals can consider. One option is to thoroughly review any other retirement benefits they may be entitled to claim.
“For example, previous employers may offer pension schemes that can provide additional monthly income.
“It is important to fully understand eligibility criteria, contribution history, payment schedules, and payout options for workplace pensions.
“Those who changed jobs regularly during their career can have multiple small pensions that collectively make a meaningful difference.”
Older households are worried about the proposed rise in the state pension age
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Concerns over supplementing retirement income come after new research has found the cost of a “comfortable” retirement has risen to £59,000 a year.
Notably, state pensioners could be eligible for extra benefit support through Department for Work and Pensions (DWP) payments.
Pension Credit is a benefit payment reserved for those on low income who receive a top-up of up to £307 a week in financial support outside of their state pension.
Furthermore, those with a disability could get extra support from Attendance Allowance which is paid at a weekly rate of up to £101.75.