Millions of people will have to wait for their state pension following the decision in Tuesday’s Autumn Statement to bring forward the rise in the state pension age.
Chancellor, George Osborne, announced that the state pension age will rise to 67 in 2026, because of Britain’s ageing population and the pressure on public finances. People aged under 52 who had previously expected to retire at 66, must now wait an extra year to draw their state pension.
Anyone born since 1960 will have to wait longer to receive their state pension although Mr Osborne said the decision would not affect anyone due to begin claiming their state pension within the next 14 years.
The Government has brought this change in earlier than it originally planned. The state pension age was previously set to rise to 67 between 2034 and 2036, and then 68 between 2044 and 2046.
Up to eight million people will be affected and the news is bound to disappoint many, but Mr Osborne said it would assure “the long-term future of the basic state pension” by saving taxpayers £59 billion.
How will the changes affect your state pension age?
The changes will have the following affect:
|Birth date||State Pension age|
|6th April 1960 to 5th April 1961||Between 66 and 67|
|6th April 1961 to 5th April 1969||67|
|6th April 1969 to 5th April 1977||67|
Find out your exact state pension age by using this pension calculator on the Directgov website.
Other Countries are doing the same
The Government is taking this action as people are living longer, due to better health and increased standards of living, making it hard for the government to support the increasing financial burden of the state pension.
George Osborne sited other big nations including Australia, Germany and the United States who have taken similar decisions as their Governments also feel the full affects of people living longer.
Responding to the decision, Michelle Mitchell, director of charity Age UK said “This 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”.
In the same speech Mr Osborne also announced some good news for existing pensioners who will see their basic state pension increase in line with September’s Consumer Price Inflation (CPI) rate of 5.2%, this will mean an extra £5.30 a week.