This is the golden question that many have been pondering over the last couple of weeks as discussions over the state retirement age reappear to the forefront.  According to the Chairman of the Pensions Regulator, it seemed inevitable that the retirement age could rise to 70, as people live longer and save less. The position has certainly accelerated from Lord Turner’s report in 2005, which recommended that the retirement age be increased to 68 by 2044. But then again perhaps a lot has changed since the review.

On the other hand, Pensions Minister Angela Eagle suggested that there were no plans currently in place to raise the state pension age beyond 68. These contrasting reports have contributed to the confusion for the general public who are unsure of when they will be able to retire. According to the latest research by Aon, 75% of workers surveyed were unaware that the minimum retirement age is set to rise in order for them to access their company pensions from 50 to 55 from April 2010.

However, the age at which one retires is only half the question answered, as many will continue to work until they can retire with a good amount of money to live on. So how much is enough? Well, one report suggests that in order to retire comfortably you will need to maintain around 75% of your income prior to retirement. For example, if you are currently on £50,000 a year, you will roughly need £37,500 a year when you retire. The question is how do you intend on accumulating the lump sum to be able to achieve this goal. This is a question that in the current environment is becoming more difficult to answer for many.

All the changes in essence mean one thing: be prepared to work longer and save more for the future.