MSE News: State pension age rise delayed

Magnolia

Now I am even more confused

Having read more about it it would seem that women were going to have to wait for 2 years before they got their pensions. Using the calculator available I am going to wait for 2.5 years!

Results
You will reach your State Pension Age on Wednesday 6 May 2015

You will be 62 years and 6 months old

Where are they getting the 2 years thing from :huh:

Maybe I am too thick to retire :rotfl:

molerat

Magnolia wrote: »

I agree with you - don't these suits in London realise that we are tired! Freeing up my job would give someone else the chance of getting out of the benefit trap and it would cost the government a lot less to pay my pension of £79 a week than it would working tax, council tax and all the other freebies that come with being on an income based benefit.

I am still unsure of how it will effect me - I was born in October 1952 and cannot make head or tail of how it all will work out:(

If born before 6 April 1953 use the calculator
http://pensions-service.direct.gov.uk/en/state-pension-age-calculator/home.asp

Simple

Magnolia

So as I was born before 1953 I wont be effected - I will still have to work for an extra 2.5 years!

Butti

Someone has pointed out something which makes us appear horribly cynical and suspicious.

If the date for the hit was left as it was the impact of this decision would have hit in April 2020. We have now moved to 5 year terms which means an election in May 2020.

A little uncomfortable? I know, lets move the problem back 6 months as a concession to those women voters. It's a win win.

B

Paulgonnabedebtfree

Butti wrote: »

Someone has pointed out something which makes us appear horribly cynical and suspicious.

If the date for the hit was left as it was the impact of this decision would have hit in April 2020. We have now moved to 5 year terms which means an election in May 2020.

A little uncomfortable? I know, lets move the problem back 6 months as a concession to those women voters. It's a win win.

B

Moved to five year terms?
It's been five years for as long as I can remember - though it's often the case that PMs choose to call an election sooner if things seem favourable.

Pollycat

I'm really annoyed about this.

I've been aware for years (maybe 15-20) that I wouldn't get my state pension at 60, I'd have to wait an extra 3.5 years.

Ok, fine.

I (long-term) planned my retirement around that date.

However, now it seems that my retirement date has been put back another 15 months at pretty short notice - which is bloody unfair and loses me over £6500 at today's rates.

If somebody had the foresight many years ago to think about changing pension age dates, why couldn't anybody else see this coming and do a proper phased approach instead of this knee-jerk reaction that affects women within 5 years of their expected retirement age.

Stargazer57

Pollycat wrote: »

However, now it seems that my retirement date has been put back another 15 months at pretty short notice - which is bloody unfair and loses me over £6500 at today's rates.

But they have restored the earnings link, so you can expect the pension to increase at around 2% a year higher than before, both before and after it starts to be paid. As a result the value of your state pension (in terms of what it would cost you to buy it as an annuity) is almost certainly higher than it was before these changes even though it starts from a later date.

I don't know why the Coalition don't draw more attention to the restoration of the earnings link but even if they did I expect the media would still bang on about the change in pension age as their job is to sell papers/attract viewers and bad news sells more than good.

No excuse on this Forum though!

Pollycat

Stargazer57 wrote: »

But they have restored the earnings link, so you can expect the pension to increase at around 2% a year higher than before, both before and after it starts to be paid. As a result the value of your state pension (in terms of what it would cost you to buy it as an annuity) is almost certainly higher than it was before these changes even though it starts from a later date.

I appreciate that.

However, I referred to my long-term retirement plans in my post.

I took early retirement 8 years ago at age 50.

I have a very detailed spreadsheet of income and outgoings covering 30 odd years and this includes my state pension with an estimated annual increase payable at dd:mm:2017.

This is now payable at dd:mm:2018 (15 months later).

So, disregarding the restored earnings link, I wiill still be worse off than I had planned.

I appreciate the need for change to state retirement age.

I just think it unfair to implement changes on a group who have already been hit by a change (phased-in change from 60 to 65) at what is (imho) pretty short notice.

Stargazer57

Pollycat wrote: »

I have a very detailed spreadsheet of income and outgoings covering 30 odd years and this includes my state pension with an estimated annual increase payable at dd:mm:2017

Sounds like I have a similar spreadsheet. Mine allows me to set a target income and see how much I end up with in 40 years time on a range of assumptions.

Or it can goal seek - to see how much income I can take to (theoretically) end up with nothing in 2050.

Pollycat wrote: »

So, disregarding the restored earnings link, I wiill still be worse off than I had planned.

I think we all understand that. The point of my post was to say that the earnings link shouldn't be disregarded. If I include it, on reasonable assumptions for earnings growth, the Coalition's changes to State Pensions leave me better off over the whole period of retirement. What's the effect on your potential income?

SnowMan

The most recent announcement (i.e. the cap to 18 months of the increase in SPA due to the acceleration of the SPA 66 introduction) affects females born between 6/1/54 and 5/10/54.

Born beween 6/1/54 and 5/2/54: a reduction of 2 months in SPA
Born beween 6/2/54 and 5/3/54: a reduction of 4 months in SPA
Born beween 6/3/54 and 5/4/54: a reduction of 6 months in SPA
Born beween 6/4/54 and 5/5/54: a reduction of between 5 and 6 months in SPA
Born beween 6/5/54 and 5/6/54: a reduction of between 4 and 5 months in SPA
Born beween 6/6/54 and 5/7/54: a reduction of between 3 and 4 months in SPA
Born beween 6/7/54 and 5/8/54: a reduction of between 2 and 3 months in SPA
Born beween 6/8/54 and 5/9/54: a reduction of between 1 and 2 months in SPA
Born beween 6/9/54 and 5/10/54: a reduction of between 0 and 1 months in SPA

So for example the women worse affected by the earlier change, those born between 6/3/54 and 5/4/54, who saw a 2 year proposed increase to 66 (or just under) will now see an 18 month increase to 65 years 6 months (or just under).

The change also affects males (those with dates of birth as above between 6/1/54 and 5/10/54) who will see their increase from SPA 65 to SPA 66 delayed in accordance with the same schedule as females.