Discover the value of your entire pension pot now.

Get Pension Audit Sheet
Oaklands Details

0121 355 4455
info@oaklandswealth.com
12A Duke Street
Sutton Coldfield
West Midlands
B72 1RJ

Oaklands Wealth Management Ltd

Holding back the years: the new State Pension Age dilemma

The government has nearly finished its review of the next stage of State Pension Age (SPA) increases. But changes to life expectancy figures pose a significant, and potentially expensive, dilemma.

A review of State Pension ages from the Department for Work and Pensions (DWP) back in March 2017 stirred initial controversy. The report by John Cridland proposed that the move to an SPA of 68 should be phased in between 2037 and 2039. That was seven years earlier than had been legislated for in the Pensions Act 2007.

Cridland’s idea was a political hot potato, not least because there was then – as there still is now – considerable controversy about the acceleration of women’s SPA to 65 by November 2018 and to 66 less than two years later. In the month after Cridland’s report, Theresa May called a general election for early June.

Unsurprisingly, in May 2017, the DWP announced that no decision would be made on fresh changes to the SPA until after a new government was formed. Fast forward two months and that newly installed government revealed it would accept Cridland’s recommendations but would not legislate them until after a further SPA review had been carried out.

It has taken until now for that process to come to fruition. Shortly before last Christmas, the DWP kicked off the promised SPA review by commissioning two independent reports. The government looks as if it will once again find itself in an awkward position.

Cridland’s report was based on Office for National Statistics (ONS) data which said a man aged 68 in 2039 could expect to live for 21.3 years and a woman for 23.2 years. However, in January 2022, when the ONS published its latest projections, the corresponding figures were 18.8 years and 20.8 years. The decline of about two and a half years has nothing to do with Covid-19, rather it reflects that life expectancy has not improved as fast as was previously expected.

Using those latest ONS figures suggests that for a 68-year-old to have the same life expectancy in retirement as Cridland predicted, the SPA should move to 68 around 2069 – a 30-year postponement of the original proposal. From the Treasury’s viewpoint, that would mean 30 years of starting to pay pensions from 67 instead of 68. The cost would run into many billions.

To check your current SPA, go to this website: https://www.gov.uk/state-pension-age

To check your retirement plans, talk to us.

Interested in finding out more?

Seeking a second opinion on your financial future costs you nothing.

Simply call our friendly team on 00121 368 5624 or drop us an email to appointments@oaklandswealth.com to arrange a confidential chat.

Oaklands Wealth Management, founded by Helen Blackburn in 2004 advises clients around the Midlands on retirement planning, pensions & investments.

Her firm holds British Standard BS 8577 for client service & investment process.

Minimum investment is £500,000 (£650,000 for pension transfers).

IMAGINE YOUR PENSION & SAVINGS 100% UNDER CONTROL…
Arrange a chat

Similar articles

OUR INDEPENDENT FINANCIAL ADVISORS

Click to view profileHelen Blackburn IFA Pension Transfer Specialist
Click to view profileNick Hampton Investment Advisor

THINKING OF MOVING FROM YOUR EXISTING ADVISOR?

It’s easy to move on from another advisor.
We’ll handle everything.

All that’s needed is for you to sign some letters of authorisation and we’ll do the rest.

None of your investments will be switched into new funds until you’ve agreed with our recommendations and you’re fully happy with any changes we propose.

Schedule a chat

7 KEY FEATURES OF THE OAKLANDS WEALTH MANAGEMENT SERVICE

British Standard BS 8577 Awarded Service

12 Month Money Back Service Guarantee

Lifetime Cashflow Planning

Risk Adjusted Personal Investment Portfolio

ISO 222222 Certified Financial Advisors

Monthly Fund Analysis

2 Investment Portfolio Reviews Per Year

A WORD FROM OUR CLIENTS...

“Following my divorce, Helen took complete control of consolidating all my individual pensions into one product after advising me carefully what she considered the best product for my needs and risk profile. She explained everything clearly in language I understood, and my investment is achieving far greater growth than expected.”

Tracy Miah

A WORD FROM OUR CLIENTS...

“Upon leaving Rolls-Royce after 26 years, I wanted to transfer my pension into an investment fund but find anything investment related a ‘black art’. Helen reviewed my circumstances and risk profile to develop my portfolio. Every Oaklands’ team member I’ve seen is an established professional and I would recommend Helen and her team in a heartbeat.”

Ian Foster

A FRIEND FOR YOUR FINANCIAL JOURNEY...

THIS IS NOT A DIY SERVICE – WE TAKE FULL RESPONSIBILITY FOR SETTING UP YOUR PENSIONS AND SAVINGS. FOR LIFE.

No half measures. We don’t set it up then leave you all at sea. We manage your investments ongoing and hold ourselves accountable for steering you through your financial journey.

This phrase came from a client who said that’s exactly what we felt like to him, he said “you are like a friend or good neighbour who’s always got my best interests at heart.”

Whatever the reason you come to us we care. We really care. Like it’s our own money.

Tidying up bit and bobs of pensions and putting them neatly in a pot you have full control over.

Maybe transferring a final salary pension if your objectives are better met with your own pension.

Making sure you get all the tax efficiencies legally available to you to enhance your money.

Pointing the microscope on 3,000+ funds and finding the best ones to secure your retirement.

Get in touch
FEES
FEES
Find out more
OUR TEAM
OUR TEAM
Find out more
CLIENT JOURNEY
CLIENT JOURNEY
Find out more
ACCREDITATIONS
ACCREDITATIONS
Find out more