Personal Finance Essay Example | Topics and Well Written Essays - 750 words - 1

Personal Finance - Essay Example The raising of the state pension age to 68 by 2048 will generally make individuals look for other income and pension alternatives which will sustain them since the current retirement age is 65. Thus, for the three years after the retirement, they will need to find a way in order to finance the lifestyle that they choose. In this case, it is expected that individuals will be opting to compensate their state pension by occupational and personal pension in order to bridge the gap. Personal pensions are more likely noting the fact that the package of benefits under this scheme is based on the discretion of individuals. Other people can also opt to find employment even after the retirement age. This is especially true noting the fact that there are some individuals who augment their pensions by retaining their jobs. Having an employment before the retirement is the most probable action that individuals will take especially those who cannot afford to purchase additional pension scheme. Inc reasing the age at which the pension plan will be received also means that the state will be paying pensioners three years less than what is previously practiced. For pensioners this can mean that lower priced packages will be made available since the expected payment time is now shorter. The establishment of a low-cost pension scheme which is coupled with automatic enrolment will allow more individuals to avail of these packages.