Increased retirement age makes private pensions more important

Following the spending review, insurance, pensions and investments specialist NFU Mutual is advising investors to make the most of their pension contributions, given the Chancellor's decision to raise the State retirement age.

The State retirement age for men and women will be increased to 66 by 2020, four years earlier than expected, in order to save £5 billion a year. Commenting on the decision, Shelagh Hamer, pension expert at NFU Mutual, said:

"This rise in the State retirement age makes private pensions all the more important for people who want to enjoy a longer retirement. It's never too early or too late to start investing in a private pension. And, with changes coming into effect from 2020, there's still plenty of time to build a substantial pension pot.

"Anyone looking to scale back their work commitments before they receive their State pension can still start drawing a private pension from the age of 55. People with private pensions will still be able to access their State allowance once they reach State retirement age."

Growing retirement savings with regular contributions is tax-efficient and many work schemes will also benefit from employer contributions. Investors looking for an independent forecast on what their current pension could pay out and how paying in more could benefit later should visit moneymadeclear.org.uk.

With over 300 Agency offices throughout the UK, NFU Mutual members wanting to discuss their financial provisions can book an appointment with an NFU Mutual Financial Consultant. Members can even arrange a home visit to talk through their finances in the comfort of their own living room.

NFU Mutual Financial Consultants advise on NFU Mutual products and services and in special circumstances those of other providers. For more information on NFU Mutual's pension products, members can visit their local branch, visit nfumutual.co.uk.