The increase in State Pension Age from 67 to 68 will now take effect from 2037, seven years earlier than previously planned.
The government has accepted the recommendation in the Cridland Review that the state pension age increase should be brought forward to reach age 68 between 2037 and 2039. Under the current law, the state pension age is due to increase to 68 between 2044 and 2046.
Secretary of State for Work and Pensions David Gauke announced this on Wednesday in the Commons.
Mr Gauke said the Government has a “responsibility” to find a balance between funding the state pension and being fair on future generations of taxpayers. He told MPs that increases in life expectancy mean those affected could still expect to receive more over their lifetimes than previous generations.
The State Pension Age will reach age 65 for all women as well as men next year, age 66 for all in 2020 and age 67 by 2028.
Effect of the proposals
Born on or before 5th April 1970 - No Change
Born between 6th April 1970 and 5th April 1978 - Your State Pension age is currently 67 – it would increase to between 67 years and 1 month, and 68 years, depending on your date of birth
Born After 6th April 1978 - No change - your State Pension age remains 68
These proposed changes would have to be approved by Parliament before they are agreed.
A person can check their State Pension online at any time for a forecast of how much they could get and when they will reach their State Pension age, under the law as it stands – see the link below.
https://www.gov.uk/check-state-pension
The State Pension Age review final report, published today, can also be accessed here.
What can You do?
State Pension provision is a good starting point, but early personal planning for your retirement is vital and our pension specialists will be happy to guide you through the best ways to build your own funds and the most tax-efficient ways to access your ‘pension pot’ in this new era of ‘Pension Freedoms’.
Many people have accrued multiple pension funds during their careers and this can be complicated, but with thoughtful and professional advice, the route to a secure future can be navigated.
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