Pension: Claer Barrett shares tips to maximise your state pension
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France is planning to increase its state pension age by two years by 2030. The new proposals state French citizens will have to reach 64 in order to qualify for a full pension.
The new proposals state French citizens will have to reach 64 in order to qualify for a full pension.
In a televised New Year’s address, President Emmanuel Macron said: “We must work longer.
“We need to strengthen the pension system, which if we do nothing will be threatened, since we will rely on debt to finance it.”
From 2027 onwards, it means the French will need to have worked for some 43 years to get the full pension.
The proposals have been met with significant backlash and opposition, with Mathilde Panot, from the La France Insoumise group, describing the policy as “unfair, brutal and cruel”.
However, the UK is also enacting its own changes when it comes to the state pension age.
These changes may be equally controversial as people resist working longer.
A review is currently taking place to consider whether the rules around pensionable age are appropriate.
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Currently, the UK state pension age is 66, and two further increases to 67 and 68 are set out in legislation.
At present, a gradual rise to 68 between 2044 and 2046 is planned.
However, the current review is considering whether the increase to age 68 should be brought forward to 2037 to 2039.
The Government has explained its reasoning behind the state pension age review.
It said: “As the number of people over state pension age increases, due to a growing population and people on average living longer, the Government needs to make sure that decisions on how to manage its costs are, robust, fair and transparent for taxpayers now and in the future.
“It must also ensure that as the population becomes older, the state pension continues to provide the foundation for retirement planning and financial security.”
Chancellor Jeremy Hunt recently confirmed the review would feedback in “early 2023”.
By law, the results must be published by May 7, 2023.
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Gary Smith, financial planning director Evelyn Partners, analysed what a change in the state pension might mean.
He said: “Analysis has suggested that if the state pension age rises to 68 a year earlier than planned, then the Treasury would save about £10billion.
“That fiscal benefit would only accrue for the Government in power at the time, and the Government of today might be wary of taking unpopular decisions that don’t benefit them.
“But previous rises in the state pension age have not been as politically controversial as governments had feared.”
Mr Smith suggests announcing a state pension age increase earlier than expected at the Budget next Spring would allow the Treasury to “show it was taking hard decisions to improve the public finances”.
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