The government recently announced that the rise in the state pension age from 67 to 68 will now be phased in between 2037 and 2039 – earlier than originally planned.
Those individuals born between 6 April 1970 and 5 April 1978 will be affected. However, no one born before 5 April 1970 will see a change to their proposed state pension age. David Gauke, Secretary of State for Work and Pensions, stated that the government is committed to ensuring a ‘fair and sustainable system’ that is ‘reflective of modern life, and protected for future generations’.
Meanwhile, a separate report published by the Institute for Fiscal Studies (IFS) revealed that women between the ages of 60 and 62 have been left ‘worse off’ as a result of a recent rise in their state pension age.
Between 2010 and 2016, the state pension age for women increased from age 60 to 63. The IFS found that women between the ages of 60 and 62 have experienced a £32 reduction in their weekly household income since the increase, leading to a ‘sharp’ rise in poverty rates amongst women of this age. The government’s eventual aim is to align women’s state pension age with that of men.
We can help you plan for a prosperous retirement – please contact us for advice.