19 Jul 2017

BREAKING NEWS: UK Government to raise state pension age

BREAKING NEWS: UK Government to raise state pension age

Six million men and women in their early 40s will have to wait a year longer to get their state pension, the government has announced.

The rise in the pension age to 68 will now happen by 2039, rather than by 2046 as was originally proposed.

Those affected are currently between the ages of 39 and 47.

Changes

Announcing the changes, Secretary of State for Work and Pensions, David Gauke, said they had to make pensions both "affordable and fair".

"People are living longer, and spending a larger proportion of their adult life in retirement than in the past," he said.

"When the State Pension was introduced in 1948, a 65-year-old could expect to spend 13.5 years in receipt of it – around 23% of their adult life.

"This has been increasing ever since. In 2017, a 65-year-old can now expect to live for another 22.8 years, or 33.6% of their adult life.

Who will be affected?

Under the current law, the State Pension age is due to increase to 68 between 2044 and 2046.

Following a recent review, the government has announced plans to bring this timetable forward. The State Pension age would therefore increase to 68 between 2037 and 2039.

The change will affect those born between 6 April 1970 and 5 April 1978.

The government said the new rules would save the taxpayer £74billion by 2045/46.

Retirement planning

Aberdein Considine’s independent financial advisers - who are authorised and regulated by the Financial Conduct Authority (FCA) - can guide you through the retirement maze and help you tailor a plan to your circumstances.

Our advisers can help you with the following:

  • Setting-up pension plans
  • Review existing pension plans
  • Pension consolidation
  • Pension drawdown
  • Annuity advice

If you would like to speak to one of our experts, click here to contact us.


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