New State Pension Query

WoodyMax

I would be most grateful for thoughts on this please. I was listening to a WHICH podcast today where they referred to people born in certain years having to wait a bit longer than age 66 to receive their state pension. I am one of those, having been born in July 1960. The podcast was giving examples saying if you were born in May 1960 you will get your pension one month after your 66th birthday if born in June 1960 two months after your 66th birthday the examples then stopped.

I was born in July 1960 yet my state pension 'forecast' states I have to wait four months after my 66th birthday.

Does anyone know why I have to wait an extra month i.e. 4 instead of 3.

Many thanks for any thoughts anyone has.

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6657182/new-state-pension-query

Presumably that is because it's what the politicians in power at the time decided.

You can check your specific SPa here

https://www.gov.uk/state-pension-age

WoodyMax

Thank you but as I mentioned I have already viewed my pension forecast.

flaneurs_lobster

Presumably because SP is paid in arrears?

molerat

The age is changing from 66 to 67 phased for those born between 6 April 1960 and 5 March 1961 each month adding an extra month on to the retirement age so born from 6 April 60 it is 66+1 month, 6 May 66+2 months etc until 6 March 61 when it is 66+12 months. This is so that there is not a cliff edge 1 year increase.

https://s3-eu-west-1.amazonaws.com/mediasp/pdf/State+Pension+Age+Timetable.pdf

Ayr_Rage

Having just used the calculator it would appear that those born on 1st to 5th July 1960 will get their pension at 66 years and 3 months and those born in the rest of that month it's 66 years 4 months.

It doesn't align with full calendar months.

Scrounger

The monthly increase starts from 06 April 1960.

Scrounger

dunstonh

I would be most grateful for thoughts on this please. I was listening to a WHICH podcast today where they referred to people born in certain years having to wait a bit longer than age 66 to receive their state pension.

The timetable for the increases was published in 2014

https://assets.publishing.service.gov.uk/media/5a7f02e640f0b62305b84929/spa-timetable.pdf

However, the increase from 67 to 68 is expected to be brought forward (just as the increase from 66 to 67 was) from its original 2007 plan.

Yorkie1

https://forums.moneysavingexpert.com/discussion/comment/81901994#Comment_81901994

Have there been any noises about when we might find out if they plan to bring forward the date at which the increase to 68 years starts being implemented (currently 1977)? How much advance notice might there be?

molerat

The government committed to 10 years notice of major changes. The last review suggested 2037-39 - so those born around 1970. The next review is expected to be published later this year so something firmer will come out of that.

SnowMan

https://forums.moneysavingexpert.com/discussion/comment/81902876#Comment_81902876

The original Cridland review suggested that the increase from 67 to 68 might affect people born on or after 6th April 1970. In the second 2023 review the Government (which was faced with mortality having worsened not improved) said it wouldn't legislate for the bringing forward of the change from 67 to 68 until the current review was out.

It is still feasible that the increase to age 68 could affect someone born as early as 6th April 1970, although someone born on that exact date would almost certainly be in the transition period and have an SPA of say 67 years and 1 month perhaps. Tweeking the proportions of working life spent in retirement and expected future mortality improvement assumptions can be used to justify anything regardless of how actual mortality has changed up to now so while actual mortality trends are relevant they aren't determining. It is likely to be in the main a political decision not a data driven decision, even if they claim the reason is data driven.

However for this to happen and affect someone born on 6th April 1970 then the final report would need to be out and acted on before 6th April 2027. This is because someone born on 6th April 1970 currently has an SPD of 6th April 2037 and it is highly unlikely that the 10 years notice principle (although not legislated for) will be abandoned this time round. I can't see anything in the timescales (which are very vague) to suggest the report couldn't come out and be acted on before 6th April 2027. The report might not be acted on until later in 2027 which would mean those born in 1970 up to that day and month should be safe. Ultimately the report might not come out and decisions made until as late as 2029, but if in 2029 decisions then would likely immediately precede a general election.

In conclusion it's hard to predict what might happen. I think anyone born just before 6th April 1970 should keep their SPA of 67. But anyone born in the years just after that could still be affected by the increase from 67 to 68. And someone born in say April 1972 is very much in the firing line to be affected by any decision to bring forward the increase from 67 to 68.