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  • FIRST POST
    Milarky
    State Pension Retirement Age for Women
    • #1
    • 12th Oct 06, 8:47 PM
    State Pension Retirement Age for Women 12th Oct 06 at 8:47 PM
    I didn't realise this until toady, but the 'equalisation' of State pension Retirement Age (SRA) for women, from 60 to 65, will actually occur in the first five years of the decade 2010 - 2020! See here

    If you are a woman born on or before 5 April 1950, you can get your State Pension from the age of 60.
    If you are a woman born on or after 6 April 1955, you can get your State Pension from the age of 65.
    If you are a woman born between 6 April 1950 and 5 April 1955, you can get your State Pension when you reach State Pension age. This will be between 60 and 65, depending on your date of birth.
    Ok, Ok I've been suckered by not reading the details of this change quite closely enough - and most affected women in these age bands will probably have already asked, and received, confirmation of their own SRAs. Yet methinks there is general ignorance in the media too because every site/page I have looked up tonight (aside from the DWP, of course) seem to use almost exactly the same words to describe this (inaccurately!):

    (Google with 'state retirement age 2010 2020' and see what you get)
    Guardian Money December 1, 2005:
    At the moment the state pension age is 65 for men and 60 for women, though for women it will gradually increase to 65 between 2010 and 2020

    GAD:
    Government Actuary Department, 1998:
    The planned change in women's state retirement age from 60 to 65 between 2010 and 2020 will further increase the working age population.

    BBC: Q&A: Raising the state pension age:
    But the pension age for women is already going to be raised by five years. This means that women will also have to retire at 65. This change will be phased in between 2010 and 2020..

    'Direct Gov.uk':
    Although you can retire at any age, you can only claim your State Pension from aged 60 if you’re a woman (progressively rising from 2010 to 65 by 2020) or from age 65 if you’re a man.

    Times Online May 20, 2006:
    Currently paid to men from 65 and women from 60, although the pension age for women will gradually rise from 60 to 65 between 2010 and 2020.

    Chris Bishop, retirement-matters.co.uk:
    ..the actual age for women to receive the Basic State Pension gradually changes between 2010 - 2020.

    TUC: 11 August 2006
    ..only a third retire early 'fully voluntarily' and many survive on state support such as Incapacity Benefit or inadequate occupational pensions until they reach state pension age (65 for men, 60 for women but rising to 65 between 2010 - 2020).

    And my favourite....
    The Rt Hon John Hutton MP
    Secretary of State for Work and Pensions


    Pensions Reform Statement

    Thursday 25th May 2006

    Mr Speaker, we propose to increase the State Pension Age in line with life expectancy. The State Pension Age for women is already due to rise from 60 to 65 between 2010 and 2020 to equalise with men’s State Pension Age. There will be a subsequent rise for both men and women from 65 to 66 over a two year period from 2024 – and further increases, also over two years, to 67 starting from 2034 and to 68 from 2044. No-one over 47 today will be affected by these changes.
    Incidentally you can find some people who have correctly described the situation for what it is - not merely what they have been told it is (without the 'elaboration'). Putting 'state retirement age "2010 and 2015"' into Google search produces:

    'Security in Retirement...' from unioncambridgeshire.org.uk:

    What age will you retire?

    In 1995 the Pension Act meant that women’s state pension age would increase from 60 to 65 between 2010 and 2015, to bring them into line with the state pension age for men. Effectively, women born before 1950 will retire at 60 years of age and those born after 1955 will retire at 65 years of age, i.e. those born in 1951 retire age 61, 1952 retire aged 62, and so on
    But having looked for other references than this, I can't find a single one.

    How the change of age from 60 to 65 actually takes place:


    Well, that's bizarre in and of itself:

    Someone reaching 60 on 5 April 2010:........ retires on 5 April
    Anyone reaching 60
    ..between 6 April 2010 AND 5 May 2010..... reitires on 6 May
    Anyone reaching 60
    ..between 6 May 2010 AND 5 June 2010..... reitires on 6 July
    Anyone reaching 60
    .between 6 June 2010 AND 5 July 2010..... reitires on 6 Sept

    So that no woman will actually retire in June 2010, August 2010, October 2010 and so on... A month's worth of retirees would be called up on the exactly the same date - and this leads to peculiar results

    A woman born on 6 May 1950 receives her pension two months after a woman born one day earlier - on 5 May 1950.Two women born 'midmonth' - 20th - one month apart receive their first payments exactly two months apart. As one is one month younger anyway, she will receive exactly one month less in total pension at any given age. A woman born 'start month' receives the same start date but is 15 days older and so has recieved 15 days less pension by a given age. The woman one day her 'senior' (and therefore born 'endmonth' of the previous cohort) receives her payments two months earlier - and thus has always received two months additional pension in total by a given age.

    So, rather than move individual retirement dates foward by two days for each days difference in age - resulting in a smoothed difference in the amounts recieved of just two days worth - the difference can build up to thirty times this. Assuming an average SP by 2010 of £90pw, that is nearly £800 less pension (in the first year) receivable by one woman born one day later than another at the 5th/6th divide. This, rather than the fact that it is going to happen in five years instead of ten, is the disturbing thing for me. It seems unjust - and it is unjust.

    Needless to say I would like people's views on this - but I shall be writing to my MP - if only to make him aware of it.
    Last edited by Milarky; 12-10-2006 at 9:19 PM.
    .....under construction....
Page 1
  • dunstonh
    • #2
    • 12th Oct 06, 9:05 PM
    • #2
    • 12th Oct 06, 9:05 PM
    There was a lot of coverage in 1995 when this was announced and I still have a little sheet which shows the month by month increase in date of birth to retirement date somewhere that I was issued with in 95.

    As it has been 11 years since it was official, I guess coverage now is not that great as its old news.... well, maybe not for you Milarky

    Any system of change is going to have people that miss out due to one day but there isnt really any easier way to do this.
    I am a Financial Adviser. Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
  • EdInvestor
    • #3
    • 12th Oct 06, 9:05 PM
    • #3
    • 12th Oct 06, 9:05 PM
    How very bizarre.

    Women are going to complain when they discover they can't claim their state pension from the relevant birthday methinks. What on earth can be the point of this rule?

    2010 is certainly an "all change" year for women in state pension terms: that's also the year that husbands/male partners can start to get pensions based on wives'/partners contributions.

    And the new rule which enables the full state pension to be given on 30 years contributions is planned to start then.This will boost the number of women able to get the full BSP from something like 35% to something like 70%.
  • isasmurf
    • #4
    • 13th Oct 06, 8:56 PM
    • #4
    • 13th Oct 06, 8:56 PM
    I think your misreading the paragraph on thepensionservice site. Women born between 6th April 1950 and 5th April 1955 will be affected, but the State Pension Age will increase over the period 2010 to 2020, effectively by 1 year every 2 years.

    For example a woman born on the 6th January 1955 will retire when she is 64yrs and 10months old (6th November 2019)

    http://www.dwp.gov.uk/international/sa29/benefits_09.asp
    UK State Pension age is 65 for men and 60 for women. But over a 10-year period starting on 6 April 2010, UK State Pension age for women will change from age 60 to age 65. This means:
    women born on or before 5 April 1950 will reach State Pension age at age 60;
    women born on or after 6 April 1955 will reach State Pension age at age 65;
    women born on or after 6 April 1950 and on or before 6 April 1955 will reach State Pension age at 60 plus 1 month for every month or part month their date of birth is after 5 April 1950. For these women, State Pension will always be awarded from the 6th of the same month.
    Here's a table with all the SPAs for women over the period
    http://www.norwichunion.com/library/pdfs/basica-state-pension-table.pdf
    Last edited by isasmurf; 13-10-2006 at 9:12 PM.
    • seven-day-weekend
    • By seven-day-weekend 13th Oct 06, 9:49 PM
    • 24,935 Posts
    • 44,879 Thanks
    seven-day-weekend
    • #5
    • 13th Oct 06, 9:49 PM
    • #5
    • 13th Oct 06, 9:49 PM
    Hey....I was born in JANUARY 1950.

    Aren't I the lucky one???!
    I am a Job Club Coach in Association with CAP
    'I believe in Christianity as I believe that the sun has risen. Not only because I see it, but because I see everything by it': C.S. Lewis
    St. Augustine 'In essentials, unity; in non-essentials, liberty; in all things, charity.'
  • kenshaz
    • #6
    • 13th Oct 06, 11:42 PM
    • #6
    • 13th Oct 06, 11:42 PM
    Hey....I was born in JANUARY 1950.

    Aren't I the lucky one???!
    by seven-day-weekend
    Guess you are ,have you calculated how much those months are worth?
    To be happy you need to make someone happy.

  • djohn2002uk
    • #7
    • 13th Oct 06, 11:49 PM
    • #7
    • 13th Oct 06, 11:49 PM
    You'd have been even luckier if you'd been born in January 1988, you'd be just 18 now...
    • seven-day-weekend
    • By seven-day-weekend 14th Oct 06, 12:03 AM
    • 24,935 Posts
    • 44,879 Thanks
    seven-day-weekend
    • #8
    • 14th Oct 06, 12:03 AM
    • #8
    • 14th Oct 06, 12:03 AM
    You'd have been even luckier if you'd been born in January 1988, you'd be just 18 now...
    by djohn2002uk
    And have no State Pension at the end of my working life......
    I am a Job Club Coach in Association with CAP
    'I believe in Christianity as I believe that the sun has risen. Not only because I see it, but because I see everything by it': C.S. Lewis
    St. Augustine 'In essentials, unity; in non-essentials, liberty; in all things, charity.'
    • seven-day-weekend
    • By seven-day-weekend 14th Oct 06, 12:04 AM
    • 24,935 Posts
    • 44,879 Thanks
    seven-day-weekend
    • #9
    • 14th Oct 06, 12:04 AM
    • #9
    • 14th Oct 06, 12:04 AM
    Guess you are ,have you calculated how much those months are worth?
    by kenshaz
    which months?
    I am a Job Club Coach in Association with CAP
    'I believe in Christianity as I believe that the sun has risen. Not only because I see it, but because I see everything by it': C.S. Lewis
    St. Augustine 'In essentials, unity; in non-essentials, liberty; in all things, charity.'
  • Bogof_Babe

    And the new rule which enables the full state pension to be given on 30 years contributions is planned to start then.This will boost the number of women able to get the full BSP from something like 35% to something like 70%.
    by EdInvestor
    I have a retirement date that will make me 61 years and 10 months of age when I reach it in 2014. However I already have over 30 years of full contributions, so will that override the scheduled date, when the new system comes in in 2010, and mean I can draw my pension earlier? Or is the 30-years contributions rule totally separate from the staggered age increase rules?

    Women who remain in the workplace after achieving their 30-year contributions are effectively paying NI for nothing, if this is the case.
    I haven't bogged off yet, and I ain't no babe


  • CIS
    You cannot draw a state pension any earlier than your designated state pension age, ie: at the moment , a person can have a full state pension 5yrs before SPA but still has to wait.

    The new rules are would apply to everyone retiring after 5April2010, independent of any rules affecting the date of state pension age.

    Once you have accrued the 30yrs (IF its passed as law), then State Second Pension (S2P) can continue to be built up from the contributions that are still made, IIRC you'll still need around 44yrs of conts for a full S2P.

    But remember that NI isnt just for State Pensions , its for the complete benefit system and the NHS, so even though you have to keep paying after accruing 30yrs of state pension, the extra money isnt wasted.
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