THERE'S a universal truth when it comes to your retirement…

If you get your pension provision right, you'll enjoy the longest holiday of your life - but if you've not got sufficient funds in place then your final years could prove one long financial struggle.

Consequently, it's imperative that we all take our pensions - both state and private – seriously.

With planned changes to the state pension forthcoming, now’s the time for us all to ensure we’re briefed about what the future holds.

I am also calling on the government to consider every option when it comes to the evolution of pension legislation.

The current situation…

The state pension age will rise from 66 to 67 between 2026 and 2028 before rising again to 68 after 2044.

In my opinion, there's every possibility that this could change again.

For example, a recent report from the International Longevity Centre (ILC) stated that the state pension age might need to reach 71 by 2050.

In short, this is to keep up with longer life expectancy and ensure that there are sufficient workers per retiree.

According to the ILC, the government’s planned rate of change to the state pension age is likely to be too slow if the UK wants to maintain its current ratio of workers to state pensioners.

To state the obvious, not everyone will be physically able to continue working until they’re 71, even if they would like to.

But we’ll have to wait and see what happens.

A different way…

In my opinion, the time is now right to have some frank discussions about reducing – rather than increasing - the state pension age.

While it’s currently possible to defer your state pension in return for a higher monthly payment, you have to wait until you reach the state pension age to draw it.

To be clear, I’m not advocating that people should be able to receive their state pension in their 50s – that simply feels too young.

But it might, in some instances, be appropriate for them to have the ability to access a reduced state pension once they reach their 60s.

I’m well aware that the state pension forms the foundation on which most people’s retirement provision is based.

Nonetheless, as auto enrolment continues to gain momentum nationally, millions of workers are building up workplace pensions which will help them attain the income they need in retirement.

Countless more have separate private pensions in place which will serve the same purpose.

Consequently, the likelihood of these individuals being solely reliant on the state pension for their income in retirement is deminishing.

Universal benefits…

It seems highly likely to me that these proposed changes could help mitigate the economically crippling repercussions of the triple lock policy, which commits the government to increase state pensions by a minimum of 2.5% each year.

In addition, reducing the age at which the state pension can be drawn could also – in my opinion – actively encourage people to plan for their own retirement more proactively.

Throughout my career as a financial planner, I’ve repeatedly seen how some people wish to work for as long as possible, while others want to embark on their retirement at the earliest opportunity.

This change would put them in control by enabling them to make their own, fully-informed decisions about what’s right for them when it comes to their state pension.  

The evolution of the state pension system is now inevitable.

But - as we head towards an autumn election - it’s my residing hope that our next government will consider every option.

Ill-judged decisions will simply have too many lasting repercussions for us all.