Since the Pensions Act 2008 received Royal Assent last month the protection provider says now is the time for advisers to explain the implications of the change and question whether or not they have income protection in place, taking in to account the age of the client.
Changes include increasing the state pension age, potentially extending the working lives of any worker now aged 48 or under, and gradually increasing the state pension age to 66 between 2024 and 2026, to 67 between 2034 and 2036, and to 68 for those retiring after April 2044. All of which could effect retirement planning, says Unum.
Unum head of retail marketing Linton Penman says: ”Although there is now a real need for most people to work for longer, statistics show that this may be compromised by the increased risk of serious illness that comes with getting older. This not only strengthens the general case for income protection, but also makes it increasingly important for advisers to recommend providers that are able to provide cover to older ages.
“Unum was one of the first providers to offer income protection to age 70, and I would call on other providers to follow suit if they haven’t already.”