Boris Johnson urged to let Britons ‘retire early’ to reduce COVID unemployment

State pension: Retirement age 'likely' to increase says expert

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Boris Johnson, Prime Minister, is in charge of implementing varying policies, and has spearheaded Government support throughout the pandemic. However, the Prime Minister is being urged to take further action to support both older and younger people in a petition on the official Parliament website. The petition is entitled: “Temporarily allow early retirement to reduce unemployment cause by COVID.”

It has argued that people close to retirement age should be allowed to retire early due to the COVID-19 crisis.

The petition assets individuals should be allowed to receive the state pension earlier in these circumstances.

This, it states, would be a temporary measure as a result of the pandemic.

It reads: “Some people close to retirement age would like to retire early.

“Some may already be receiving state benefits from the furlough scheme or unemployment benefit.

“Some may be eligible for private pensions before state retirement age but cannot afford to retire without a state pension.”

The petition also highlighted how COVID has affected other groups.

With the young also impacted by the pandemic, the petition suggests older people who do not retire early would be competing for jobs with less experienced younger people.

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As such, it suggests, a temporary programme of early retirement could help with this kind of burden. 

It continued: “The proposal may be cost neutral or relatively cheap because of savings in various benefits received by unemployed people with families and will have huge social benefits.

“The retired may contribute to the economy in the form of part-time work, income tax, or the purchase of services such as home improvements using capital released form pension funds.”

At present, the petition has garnered 133 signatures, so it has a way to go until reaching the 10,000 trigger point.

At 10,000 signatures, the Government is required to respond formally to the petition.

Once a petition reaches 100,000 signatures, it will be considered for a debate in Parliament. 

The deadline for this particular petition, however, is looming.

Having been on the official Government website for a few months, it is set to come to a close on July 6, 2021.

The Government has provided guidance for those who are considering early retirement, regardless of what the rules may be.

Currently, the state pension can only be unlocked at state pension age, and so Britons will have to wait to receive this sum.

With regards to personal and workplace pensions, these can be accessed after the age of 55 under pension freedoms rules.

But Britons should be aware their pot could be smaller when retiring early, as it has had less time to build up and increase in value.

Finally, for those in receipt of benefits, early retirement could be impactful.

The amount of money a person receives from certain income-related benefits such as Pension Credit, Universal Credit or Income Support could be affected if someone takes their pension early.

However, those retiring early because of ill health may be entitled to receive additional support. 

Help is offered to Britons via services such as Pension Wise, Citizens Advice and the Money Advice Service. 

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