In the Autumn statement yesterday George Osborne announced that the planned increase in state pension retirement age from 66 to 67 would be brought forward from 2036 to 2028. This move is expected to save the Government £60 billion.
Anyone aged between 42 and 51 will be expected to work another full year before they can draw their State pension. The Government states that this latest move has been brought about due to rising life expectancy levels and therefore increasing costs on paying State pensions as people live longer.
In response to the announcement Michelle Mitchell, Charity Director for Age UK said "The decision to speed up the timetable to increase the State Pension age to 67 will come as a bitter blow to many people fast approaching retirement, especially those in ill-health, caring for relatives and those out of work.
'Age UK recognises that as life expectancy increases it is reasonable to consider increases to State Pension age and longer working lives, however this decision has been based on no published detailed analysis. Average life expectancy must not be the only factor that is considered as, at the moment, the huge disparities in healthy life expectancy across the country means that the poorest socio-economic groups will be required to sacrifice proportionately more of their retirement". However Mr Osborne said the changes would allow future Governments to “go on paying a decent pension to people who are living longer”.
Plan early for your retirement
With successive Governments making changes to the State pension it is important that people start retirement planning sooner rather than later. The Basic State pension for single people is currently £102.15 per week. You may also be entitled to an additional state pension based on your earnings prior to retirement. More information about your State Pension can be obtained from the Government website DirectGov.
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