New plans announced in July 2017 meant that the rise in the state pension age to 68 will now happen in 2039, affecting nearly six million men and women will have to wait a year longer than they expected to get their State Pension
At present the full State Pension is £159.55 per week; the actual amount you get depends on your National Insurance record.
The rise in the pension age will be phased in between 2037 and 2039, rather than from 2044 as was originally proposed. Those affected will be between the ages of 39 and 47, but the exact date that you receive your State Pension will depend on the year you were born. This announcement is aimed at catching up with years of increasing life expectancy, even if recent indications suggest that growth has slowed.
The table below shows the increases outlined and how this could affect you:
As commented on by Abigail Flanagan earlier this year, the announcement is based on the recommendations of John Cridland report, which proposed the change. The change will affect those born between 6 April 1970 and 5 April 1978. Anyone younger than 39 will have to wait for future announcements to learn what their precise pension age will be.
Cridland also said that the State Pension age should not increase more than one year in any ten-year period, assuming that there are no exceptional changes to the data used. This would give those generations affected by changes adequate time to save and plan.
‘As life expectancy continues to rise and the number of people in receipt of State Pension increases, we need to ensure that we have a fair and sustainable system that is reflective of modern life and protected for future generations,’ said Secretary of State for Work and Pensions, David Gauke.
It seems evident that the Government is taking a gradually declining role in supporting retirement income. A combination of increases in life expectancy, and the growing number of retirees relative to the working age population, means that individuals will now have to work longer or save harder for their own retirement.
To find out more about the different pension and savings option you could utilise, or to discuss you requirements please contact our Independent Financial Advisers on 029 2066 0565 or email us at email@example.com.