UK Pension Reform
Increases To The UK State Pension Age
Although increasing the age at which you get your state pension is bound to be unpopular with a lot of people, it is widely-believed to be necessary, and other countries are making similar changes.
There are three reasons for this:
Average life expectancy is rising – we are living longer and drawing pensions for a greater time – since 65 for a man and 60 for a woman was chosen a century ago, we typically live for a further 20 years.
There are fewer younger people and more older people.
The state pension scheme needs to spend less.
All this means that for the numbers to add up, we all need to work longer.
If you were born before 1959 and are a man, you can stop reading now – this won’t affect you unless you are a woman.
If you were born after 1959, read on whatever sex you are – you will be affected by these changes.
The first change is that the difference in pension ages between men and women is being abolished. The state pension age for women will be gradually increased from 60 to 65, starting in 2010:
New state pension ages for women
|
Date of Birth
|
New State Pension Age
|
|
6th April, 1951
|
61
|
|
6th April, 1952
|
62
|
|
6th April, 1953
|
63
|
|
6th April, 1954
|
64
|
|
6th April, 1955
|
65
|
This will be introduced gradually between now and 2020. So if you were born in 1953, you can claim the state pension in 2016 (instead of 2013 had the scheme stayed unchanged). Those women born in 1955 and after will have to work for five years longer.
Men read this as well as women
The next change is for the state pension age to be increased from 65 to 68 for both sexes over three stages.
New state pension ages for Men & Women
|
Date of Birth
|
New State Pension Age
|
|
6th April, 1959 onwards
|
66
|
|
6th April, 1968 onwards
|
67
|
|
6th April, 1977 onwards
|
68
|
You will still be able to retire early if you want to, but you will have to be able to support yourself until you reach the new state pension age.
Read on about