Huge change to state pension age delayed – how it will affect you | The Sun

A BIG decision about the state pension age has been delayed by the government, affecting millions of Brits.

The current age at which people can claim a state pension – which is 66 – is due to rise to 67 by the end of 2028 and to 68 by the end of 2046.

However, the government had previously expected to bring this forward.

The plans were today, March 30, delayed due to a falling life expectancy in the UK.

Work and Pensions secretary Mel Stride told MPs in the Commons that while life expectancy is still rising, it is doing so at a much lower pace.

That, plus other factors such as the pandemic and the Russia-Ukraine war, he felt it would be appropriate to review the rise to 68 again at a later date.

Read more in money

Thousands of women STILL missing out on £1,000 in state pension

Plans to make major change to state pension could be delayed

He said: "It’s essential the state pension remains sustainable and fair across the generations.

"Our balanced approach will help achieve this and ensure we continue to provide security and dignity in retirement for millions of people across the country."

The Government plans to have a further review within two years of the next Parliament to reconsider the rise.

This gives the government appropriate time to take into account evidence which is not yet available on the long-term impact of recent challenges, including the Covid pandemic and global inflationary pressures.

Most read in Money

Commenting on the news, Andrew Tully, technical director at Canada Life, said: "It is understandable why the Government has delayed this decision.

"However, with the cost of state pensions increasing and the current position of UK finances, we need a proper debate on the future of the state pension.

“Increases to life expectancy have not only slowed but projected to go into reverse since the last review."

The delayed decision means that millions of workers who were previously expecting to work for longer have been given relief.

However, that could change at the next review.

The Sun revealed earlier this year that ministers were locked in discussions about bringing the rise to 68 forward.

Some ministers were pushing to bring it forward to as early as 2033.

A previous review recommended bringing it to between 2037 and 2039 as people were living for longer, and therefore needed to work for longer to put extra cash into their pots.

The state pension bill is set to balloon from £110billion this year to £150billion within the next five years alone, the Office for Budget Responsibility has warned.

But the DWP were resistant to raising the age again – as life expectancy has plateaued in recent years.

It could mean some people dying before they are able to access their hard-earned pots.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown: "The accelerated shift to age 68, once seen as a foregone conclusion, has been shelved.

"Looking more widely the increases in longevity which have fuelled previous increases have slowed and it’s fair to say many people’s health would make working until age 68 incredibly difficult.

"People have worked hard for many years and need certainty as to when they will receive their state pension to help them plan effectively and this move will come as a real relief."

How can I work out my current state pension age? 

You can use the state pension checker tool on Gov.uk. 

The government tool is there to help you find out how many years of contributions you have, how much state pension you’ll get and the exact date on which you’ll receive payments.

It’s important to note that you can retire at any time, but you need to have a personal pension or retirement plan in place.

Do you have a money problem that needs sorting? Get in touch by emailing [email protected]

Source: Read Full Article