Changes to the State Retirement Age
With the Government’s seemingly endless tinkering with the State Retirement Age it is easy to lose track of when you can expect to receive your State Pension. We have moved a long way from the days when men retired at 65 and women at 60.
The following is a summary of where we are at and what further changes the Government is proposing to make to the State Pension Age (SPA).
These were introduced in the Pensions Acts of 2007 and 2011 and were designed to increase the SRA for women to 65 and then to 66 and 68 for both men and women.
|WHEN||WHO||BORN BETWEEN||NEW SPA|
|2010 to 2018||Women||April 1950 to December 1953||SPA increases gradually to 65|
|2018 to 2020||Men & Women||December 1953 to April 1968||SPA increases to age 66|
|2044 to 2046||Men & Women||SPA increases to age 68|
The Pensions Bill 2013 proposes to make further changes which are likely to be made law by the end of the year. This introduces a SRA of 67.
|WHEN||WHO||BORN FROM||NEW SPA|
|2026 to 2028||Men & Women||April 1960||SPA increases to age 67|
Confused – well you’re probably not alone. Enter your details in the following website www.gov.uk/calculate-state-pension to get your expected SRA under the current rules but remember that it could well change again if the last few years are anything to go by. In fact, the Government has stated that the SRA will be reviewed every five years with the next review taking place in 2017.
Don’t forget that in addition to the above, the Government will be replacing the current two tier State pension that is comprised of the basic state pension and second state pension (S2P – previously SERPS) with a flat rate pension from April 2016 paying a maximum of around £144 a week in today’s money if you have made National Insurance Contributions for a minimum of 35 years.