State pension warning as age could ‘gradually rise’ beyond 70

Many older Britons rely on their state pension to cover their daily costs and the payment is set for a major boost next year if the triple lock is reinstated. The new full state pension could rise to more than £200 a week for the first time if the policy returns and payments increase by 10.1 percent, in line with inflation.But people set to retire in the coming years will have to wait longer to claim the funds, as the state pension is already poised to increase.Rowan Harding, from Path Financial, explained: ‘The current state pension age is 66 for both men and women.’We don’t know exactly when it might increase again, but is regularly reviewed (every six years), so it is likely to change again in the future, depending on different factors such as changes in life expectancy.’There are two further increases currently set out in legislation, which are: a gradual rise to 67 for those born on or after April 5, 1960; and a gradual rise to 68 between 2044 and 2046 for those born on or after April 5, 1977.READ MORE: Mortgage holders who are ‘worried about rates’ urged to make important check or risk fee The state pension age is set to rise to 68 (Image: GETTY)’The state pension is a pay-as-you go system, and today’s workers are paying for today’s recipients of it.’The Government has to balance this, and sometimes needs to take steps to control how much is paid out – one such measure is to increase the state pension age again.’Ms Harding warned ministers may increase the state pension age to as high as 70 and even beyond that.She said: ‘Whilst I wouldn’t expect it to suddenly jump that high [70], I wouldn’t rule out a gradual rise to 70 – and beyond – eventually. Many people rely on the state pension to pay their everyday bills (Image: GETTY)’Aim to put in as much as you can earlier on in your working years into a pension, and perhaps you might also be lucky enough to have family or friends who will contribute into your pension too.’The financial expert said there are ‘lots of different ways’ to saving for retirement other than pensions: ‘If you can, consider ISAs and property as part of your long-term investment strategy.’I would also consider living a low impact, and therefore low expenditure lifestyle – meaning that you can put aside more money into your pension pot each month.’Creating a monthly budget – and sticking to it – is key to taking control of your money. I’d also recommend making sure you have an emergency fund so that you don’t need to dip into your regular income that should be going towards your long-term retirement plans.’Finally, if you’re unsure or concerned about your retirement plans, speak to a financial advisor for guidance.’