Working past 50 will get you nothing!: says new rule
People may have to rethink the age they wish to retire, as new pension rules are not paying workers a penny after they reach the age of fifty.
This could ignite stark change in the workplace, as actuarial firm Willis Towers Watson warns that it could lead many to lose the incentive to work into middle age.
Under the old state pension system, you could keep receiving pension benefits right up until retirement.
But under the new model the maximum amount, currently £160 a week, is received in return for 35 “qualifying” years of employment. Any years you work beyond that do not increase your pension.
“It will be normal for someone who is constantly employed after leaving full-time education to max out their state pension in their fifties,” said David Robbins, of Willis Towers Watson.
If National Insurance will no longer pay into their pension, many middle age workers may start to see it as an unfair tax on their income.
A spokesman for the Department for Work and Pensions defended the welfare and health benefits of National Insurance, but it does remain controversial.
With people now afforded the full state pension after 35 years it is possible that someone as young as 41 today could be guaranteed the full amount. According to the new rules, this person would still be expected to retire at 68, meaning the last three decades of his career would add nothing to his pension.
The Department of Work and Pensions insists the new pension is clear and simpler than the old one, but the public may not agree.
Willis Towers Watson could not say how many people working today would even hit full state pension by the time they were 50, but the ensuing years will tell.
You can use the Government’s “check your state pension”website tool to see when you are likely to reach full state pension.
The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!
See all our latest news here!
Keep up to date with the latest news by following us on social media:-
CPA on Linkedin
CPA on facebook
CPA on twitter
Watch the video to find out how CPA can help you
Read Our Blog – How to overcome common excuses for non-payment
Read our blog – Debt collection agency
Read about our overdue account recovery service
Read our blog – What is credit management?
Read our blog -What is a credit management company?
Read our blog -Credit Management that works!
Read our blog – How to select a debt collection agency
click to see read about our successes
Please call us on 0330 053 9263 to discuss how CPA can help your cashflow. Alternatively, either email us or use our contact form.