State Pension Age Increase
The next State Pension Age increase has edged nearer. Do you know when you will start to receive your single-tier State pension? You can use the government website (www.gov.uk/statepensionage) to tell you, but the answer may not be the correct one for much longer.
The Department for Work and Pensions (DWP) is due to announce shortly when the next increase in State Pension Age (to 68) will take place. Existing legislation, dating back to 2007, says that this will happen between 2044 and 2046, 18 years after the increase to age 67. However, a recently published report prepared by John Cridland for the DWP has recommended that the schedule should be brought forward by seven years to 2037–39. That would mean if you are under 47, your State pension age will rise.
Born after 1988?
The DWP or, perhaps more accurately the Treasury, is unlikely to contest such a money-saving proposal. Looking longer term, Mr Cridland suggested that further increases should not be more than one year every ten years, unless there were exceptional circumstances. That might mean anyone born after 1988 will face a State pension age of 70. Perhaps it is time to start reviewing the adequacy of your private pension provision. Contact us