“The latest Government Actuaries Department (GAD) projections regarding the National Insurance Fund used to pay State Pensions will run out by 2033. That’s quite a headline and certainly one that causes concerns for those approaching or planning for their retirement. What the projections are saying though is that essentially the receipts from National Insurance collections will become insufficient to fund the actual payment of State Pensions by this date and this leads to all sorts of possible dilemmas for politicians. The problems really stem from our aging society where more and more people are living longer than in previous years and the baby boomers all looking to draw on a state system at the same time.
First possibility is to raise more from National Insurance contributions though this is never potentially a vote winner. They could of course simply increase the age in which we are entitled to receive our State Pensions and this is something that politicians have not been shy in doing. Alternatively they could make State Pensions means tested so that only those that really need it actually get it. All very difficult decisions and to be fair none of them are particularly palatable to the general public but it is generally agreed that something will have to happen and perhaps sooner rather than later.
I my view this just highlights the need for detailed retirement planning. Whilst there remains uncertainty over the State Pension you can control your own provision both in the sense of how much you will receive in retirement and when. With careful and regular assessments of your retirement savings hopefully you will put yourself in a position where the state pension is more of a bonus than a necessity. Taking the decision out of politicians hands therefore hopefully means that the tough decisions that they inevitably have to make will not have too great an impact on your future financial security. For more information about reviewing your pensions speak to either myself or Ian Dowdell.”
“The latest Government Actuaries Department (GAD) projections regarding the National Insurance Fund used to pay State Pensions will run out by 2033. That’s quite a headline and certainly one that causes concerns for those approaching or planning for their retirement. What the projections are saying though is that essentially the receipts from National Insurance collections will become insufficient to fund the actual payment of State Pensions by this date and this leads to all sorts of possible dilemmas for politicians. The problems really stem from our aging society where more and more people are living longer than in previous years and the baby boomers all looking to draw on a state system at the same time.
First possibility is to raise more from National Insurance contributions though this is never potentially a vote winner. They could of course simply increase the age in which we are entitled to receive our State Pensions and this is something that politicians have not been shy in doing. Alternatively they could make State Pensions means tested so that only those that really need it actually get it. All very difficult decisions and to be fair none of them are particularly palatable to the general public but it is generally agreed that something will have to happen and perhaps sooner rather than later.
I my view this just highlights the need for detailed retirement planning. Whilst there remains uncertainty over the State Pension you can control your own provision both in the sense of how much you will receive in retirement and when. With careful and regular assessments of your retirement savings hopefully you will put yourself in a position where the state pension is more of a bonus than a necessity. Taking the decision out of politicians hands therefore hopefully means that the tough decisions that they inevitably have to make will not have too great an impact on your future financial security. For more information about reviewing your pensions speak to either myself or Ian Dowdell.”