MSE News: Autumn Statement 2013: Pension age to rise to 68 in 2030s

zagfles

patanne wrote: »

I agree Zagfles, but when at the time it was originally explained to me (many many years ago) I was told a man's grad pen could be inherited & a woman's could not.

So a widow could inherit her husband's graduated pension, but a widower couldn't inherit his wife's? I suppose that was similar to the old pre-2010 rule than a man couldn't get state pension based on his wife's NI record, but a woman could based on her husband's (now both can).

Which seemed a bit of a double whammy. I've always agreed with the same retirement age, but if you bring in equality for some it should be brought in for all.

Indeed. I was only responding to the PP who wanted to base pension age on life expectancy.

I know it is a very small amount but they shouldn't bring up the "it's only right & fair that ..." when it benefits men/lowers womens rights & completely ignore it if it benefits women. I'll get off my hobby horse now (well for now at least)

Quite. Same with maternity/paternity pay. Even if maternity pay is transferred it still has to be earned by the woman.

FatherAbraham

patanne wrote: »

I've always agreed with the same retirement age, but if you bring in equality for some it should be brought in for all. I know it is a very small amount but they shouldn't bring up the "it's only right & fair that ..." when it benefits men/lowers women's rights & completely ignore it if it benefits women.

Equal state pensions age for men and women is of enormous benefit to women, who live longer, and therefore receive more payments from the system.

If things were fair, women would have a state pension commencement age several years after men.

Warmest regards,
FA

hansi

I'm a little confused by the new flat rate pension they are going to introduce. I am 70 and have been on the basic state pension and S2P for five years. Will this continue, or will I have to switch to the new pension when it is is introduced.

zagfles

hansi wrote: »

I'm a little confused by the new flat rate pension they are going to introduce. I am 70 and have been on the basic state pension and S2P for five years. Will this continue, or will I have to switch to the new pension when it is is introduced.

It will continue, the new pension won't affect you at all.

hansi

Thank you:j

JezR

In the 1961-75 graduated pension scheme women had to pay more for a graduated pension unit than men (£9 v £7/10/0), and were allowed to accrue fewer units through their working life than men (72 v 86), although the unit value of the extra pension was the same (6d per unit). This was supposed to be related to an earlier pension age and longer life expectancy.

Changes in April 2010 abolished the differing maximum units and also equalised the inheritance rules - now any spouse inherits half of the grad entitlement of the deceased. Prior only a widow could inherit half of her husband's grad.

jamesd

downshifter98 wrote: »

I'm 49 years and 6 months old ... and just want to be told whether I'm getting a state pension at 67 (which is the basis I've planned on for the past 5 or 6 years) or 68 or whatever

Your state pension ages are:

1. Under current rules, age 66.

2. Under the proposed flat rate cut to pensions for employees, age 67. This age applies to anyone born between 6 March 1961 and 5 April 1977. Those born from 6 April 1960 to 5 March 1961 get extra months added to age 66, more added for those who are younger. There's a table of ages on page 102.

3. Under this new announcement, unclear, though it was announced as an increase for those in their 40s and you are still in your 40s. Assuming a staggered increase is used your state pension age would probably increase by a month or two at first, then more if life expectancies continue to increase. It's also not clear whether there will be an age at which changes stop happening so people can plan on a fixed age from that point. If there is no such fixed age you could find yourself retiring at 55 and finding your state pension age continuing to move later. While it is unclear at the moment, here's an example possible calculation for one third of adult life, assuming state pension age of 67 and weighted average male and female life expectancy of 88 at age 67 (male at age 65 in 2013 is 21.8 years, female is 24.4 years):

(Life expectancy at SPa) / (Life expectancy at SPa + SPa – adult life starting age)

21 / (21 + 67 - 18)

Answer: 0.3.

This is less than one third of adult life so state pension age should be lowered on this calculation until the answer is 0.33.

But that is using the age for people who are currently 65. The proposal is to use the cohort life expectancy at the time the person reaches state pension age. For you that is around 2028 so I'll use that year. Life expectancies at 65 for males and females at this age used to be 23.3 and 25.8, average 24.55. Calculating with this and age 67 SPa:

24.55 / (24.55 + 67 - 18)

Answer: 0.3338. that implies a slightly older age. Not as high as 68 because that gives the answer 0.32 ( 23.55 / (23.55 + 68 - 18) ).

So on current life expectancy projections not a lot of change for you from the proposed one year delay to 67. But this will probably change and you should recon on no younger than 68 and perhaps as high as 69 unless there is some protected age after which there will be no change.

jamesd

zagfles wrote: »

So men would get higher pensions than women?

Not higher pensions, earlier state pension age so that both genders on average spend one third of their adult life receiving the state pension.

Otherwise the real rule is more like men spend one third less one year getting the state pension and women spend one third plus one year, using 23.3 and 25.8 as life expectancy at age 65 from the source in my last post.

And it is of course obviously gender discrimination to have a one third rule but then give men less and women more.

FatherAbraham

jamesd wrote: »

So on current life expectancy projections not a lot of change for you from the proposed one year delay to 67. But this will probably change and you should recon on no younger than 68 and perhaps as high as 69 unless there is some protected age after which there will be no change.

Hmm, I'm sure I've seen the principle stated (but before yesterday's announcement) that reviews of state pension age would be performed every five years, and that once one was within ten years of one's pension age, it would not change.

Sorry, I cannot provide a reference right now; however, it seems likely to be true, because having fewer than ten years to prepare of loss a year's state pension income would be disastrous for many "early" retirees.

So, don't give up work until you get within ten years of state retirement age, for safety.

Warmest regards,
FA

jamesd

Thanks. With the proposed flat rate ages the protected range would need to be about 12 years: state pension age 67 minus age 55 as the first age at which standard pension benefits can be taken.