Finance

State Pension age is changing TOMORROW – are you affected?

State Pension is offered by the Department of Work and Pensions (DWP) to hard working Britons who have give years of National Insurance (NI) contributions. The sum can often go towards the cost of living, or helping people to achieve their retirement goals. It is often considered as a valuable safety net, given that it is received on a regular basis of four weeks.

The State Pension system is split into two tiers which differ on the basis of when a person retired.

On the basic or ‘old’ State Pension, the maximum a pensioner can expect to receive is £134.25 per week, but only if they have 30 years or more in NI contributions.

Those on the new State Pension must have retired on or after April 6, 2016, and they could receive a maximum of £175.20 per week, but for a minimum 10 years in NI contributions.

It is worth noting however that the government has put into place another set of changes which have been occurring incrementally within recent months and years.

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Anyone who was born between August 6, 1954 and September 5, 1954 will see their entitlement age increase from 65 to 66 tomorrow. 

After this change, one more will take place in September, so it is important for those close to this age bracket to stay vigilant. 

The government has outlined its reasons for the State Pension age change, and further changes are scheduled to occur in the future.

The increase of State Pension age, the government states, is in line with higher life expectancy in the UK.

Britons are now spending a larger proportion of their adult lives in retirement than ever before, and so the government says it is making adjustments to take this into account.

A review undertaken in the last few years saw the government announce plans to bring its State Pension age timetable forward.

Consequently, the State Pension age is set to increase to 68 between 2037 and 2039.

This means larger proportions of the population will be required to work for longer until reaching entitlement to State Pension. 

The incremental changes may create confusion, however, the government have sought to circumvent this. 

By logging onto a portal, accessible through the government website, Britons will be able to use a calculator which provides details concerning entitlement. 

If a person enters their date of birth and gender, the State Pension tool will reveal the age at which they could be set to retire.

It can also provide Britons with additional help as to how to maximise their State Pension sum.



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