Male state pension at 66 from 2016?

bigfreddiel

George Osborne: "Our aim will be to bring forward the date when the pension age rises"

Shadow Chancellor George Osborne has outlined plans to raise the state pension age for men to 66 from 2016, up to 10 years earlier than planned.


Is this still on the cards to happen? I've not heard it mentioned since the election.
And when exactly does it happen in 2016? I presume it will be tied in to the financial year (April) which is not good news for me I turn 65 in July 2016!




fj

Paul_Herring

Bear in mind that the age you're talking about is the age at which you're entitled to the state pension, and shouldn't affect any private provision you have (if any.)

If it follows the current method of calculation but bringing it forward by 10 years, you'll get it when you hit 66. (Use this calculator and add 10 years.)

hugheskevi

Is this still on the cards to happen? I've not heard it mentioned since the election.
And when exactly does it happen in 2016? I presume it will be tied in to the financial year (April) which is not good news for me I turn 65 in July 2016!

Yes, it was part of the coalition agreement. However,2016 is the earliest it is said it will be done, not that it will be done in 2016.

jamesd

If you want to prepare for this, you can get a state pension forecast and find out your projected state pension. Divide by five and that will tell you how much you need to save so you can still retire at 65 and live on savings until you reach 66. The amount you have to put away is effectively an extra tax you're paying.

artha

jamesd wrote: »

If you want to prepare for this, you can get a state pension forecast and find out your projected state pension. Divide by five and that will tell you how much you need to save so you can still retire at 65 and live on savings until you reach 66. The amount you have to put away is effectively an extra tax you're paying.

I also turn 65 in July 2016 and retired last year on a company pension with the assumption in long term plans that I would get my state pension at 65. To compound the problem my wife will turn 65 in 2020 and part of my assumptions was that she would get her state pension in 2020. If the changes go ahead then our retirement plan will have to find 10k+ to put us back to where I thought we would be.

bigfreddiel

Paul_Herring wrote: »

Bear in mind that the age you're talking about is the age at which you're entitled to the state pension, and shouldn't affect any private provision you have (if any.)

If it follows the current method of calculation but bringing it forward by 10 years, you'll get it when you hit 66. (Use this calculator and add 10 years.)

I usd the calculator and it came back with:

You will reach State Pension age on 18 July 2016
Thanks to all that responded, from the other responses it seems this could still change and be brought forward to 2016 at the earliest, so whats the chances of this happening? Maybe the emergency budget on 22nd June may be when all is revealed!

Luckily I have 'gold plated' final salary civil service pension kicking in next july so waiting a year for my state pension will just be annoying to say the least.

jamesd

artha, not long enough to plan in my opinion, even though I think it's a good idea to bring forward the age at which later retirement starts. Your case is a good one to illustrate the problem: people have already acted, knowing when they would get the higher income. Someone could have purchased say a five year annuity with their savings, knowing that it only had to last until they reached 65, leaving them with a one year gap and no income for it.

artha

jamesd wrote: »

artha, not long enough to plan in my opinion, even though I think it's a good idea to bring forward the age at which later retirement starts. Your case is a good one to illustrate the problem: people have already acted, knowing when they would get the higher income. Someone could have purchased say a five year annuity with their savings, knowing that it only had to last until they reached 65, leaving them with a one year gap and no income for it.

Hopefully an increase in personal allowance will go some way to offset the possible loss of a years state pension but I also think that giving people 6 years notice is not long enough especially when they have already retired. My financial plans in retiring early allowed me to make a promise to my wife that she could consider retiring in 3-4 years time when she reaches the age I retired at. As my wife has only a very small occupational pension(2.5K) to come at age 60(2015) it meant that between 2013 and 2016 we would have a lean period for income until I got my SP at 65(2016) followed by hers in 2020.
Both of these dates look like they may now be 2017 and 2021
Just to make sure there's no misunderstanding I appreciate that cuts/tax rises across the board are needed and I would fully support that need. Putting up VAT, means testing bus passes, winter fuel allowance and tax credits etc I can live with but taking an effective lump sum from pensioners is a step too far.

Our MP is now a Conservative (formerly Labour) so I guess I should write and express my concern. I would encourage others to do the same

mjm3346

These changes have been in place for sometime-
2010 to 2020 women's retirement ages are increasing to 65
2024 to 2026 retirement ages for men and women are increasing to 66
2034 to 2036 retirement ages for men and women are increasing to 67
2044 to 2046 retirement ages for men and women are increasing to 68
so people have had many years to plan for it.

The Tory proposal is to make people work an extra year before they can get the state pension and potentially with less than 6 years notice. This obviously makes less difference to the wealthy as they can afford to retire before receiving the state pension.

Paul_Herring

artha wrote: »

Hopefully an increase in personal allowance will go some way to offset the possible loss of a years state pension

There has, to my knowledge, been no mention so far of moving the age related income tax bands, which means at 65, you're already getting an allowance of £9,490 for this tax year, well above whatever will be announced in the budget for the under 65's. (The rise to £10,000 will happen over the parliament, not all at once.)

Unless, of course, they do spring on us a raising of the age at which you're eligible for what is currently the 65-75 band.

Stargazer57

artha wrote: »

Our MP is now a Conservative (formerly Labour) so I guess I should write and express my concern. I would encourage others to do the same

As this proposal was in the Conservative manifesto, I reckon you will be wasting your ink. The reply will say "We're doing what the electors asked us to do..."

If you were going to complain the time to do it would have been when it was announced (at the Tory conference last year) or some other time before the election.