Pensioners Could Work Until 71
The labour chancellor who has warned that the state pension bill is getting out of hand has welcomed the news that Denmark new pension age is 70. That is right, if you were born after 1970 then you can’t get a state pension until you are 70.
Now, here is the thing. Rachel Reeves has commissioned a review of the state pension and the cost to the government, and she has made no secret the state pension is too low and is costing too much money.
Now, the review will be published in around 12-months’ time, but I can give you a snippet into what the report is looking into.
Rachel Reeves is looking at raising the state pension age to 71 for people born after 1970. But even though that will save the government a lot of money in the long run, she needs to find a solution here and now.
And one of the solutions she believes will work in the short term is to means test the state pension. Rachel Reeves believes this is a real solution to cut down the pension bill and some financial experts agree with her.
So, how will that work. Well at the moment we only know what some financial experts have reported. And that is, it could work that your state pension could be reduced if you have money saved up. Similar to universal credit. Another way could be that you don’t get a pension until you have used the savings that goes over the threshold.
But we don’t know what will happen until the pension review has been published. Let me know what you think.
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