Retirement age increases confirmed

Retirement age increases confirmed
Friday, 12 November 2010 14:50

The government has confirmed that the state pension age will rise to 66 in 2020. This announcement came out in the Comprehensive Spending Review but has now also received specific confirmation.

Original plans under the Labour government were that the pension age for women would climb from 60 to 65 by 2020. Further the retirement age for both men and women would increase to 66 by 2026.

The revised proposal though sees retirement ages between men and women equalised much sooner, by two years to 2018. The state pension age is raised to 66 for both in 2020, this is six years earlier than previously planned.

This means the pension age for women will increase to 65 by November 2018 and then increase again to 66 in April 2020. The move up to 66 years will be managed by increasing the state pension age three months in every four month period.

Steve Webb, the Minister of State for Pensions, said: "We are all living longer than ever before, and it is important for government to take this into account when developing policy.

"As longevity increases it is only fair that costs are shared among the generations. Accordingly, the Government has decided to bring forward the increase in the state pension age to 66.

"Although women will experience the rise in the state pension age more quickly than previously planned, they will still draw the state pension for longer, and our 'triple guarantee' means someone retiring today on a full basic state pension will receive £15,000 more over their retirement than they would have done under the old prices link."

The DWP added: "This decision means a total of 4.9 million people in Great Britain will have their SPA revised. Of these, 4.4 million men and women will have an increase in SPA of a year or less."

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