Do You Know Of The Changes To Pension Ages?

Ray Stewart Business, Tax Matters Leave a Comment

I was researching pension information for a client this morning who is about to retire and I found some really disturbing facts out about when we are going to be allowed to retire and draw a state pension.

I knew some changes were afoot but I did not know they had actually been decided.  It could be just me.  After all I have not bought a newspaper in a long time as I do not believe in killing trees for paper to print stuff that is already yesterdays news when it is read.  But I was very surprised to learn that the retirement age is moving.

[private_basic]It has long been a concern that the government, with its incompetent handling of our economy, will not have enough in the coffers for my own pension when I hit 65 in 13 years time.  It seems the government are now thinking the same thing and have therefore decided to move our pension ages.

Currently, the state pension age is 65 for men and 60 for women.  In 2010 (next year) the state pension age for women will gradually increase so that by 2020 it will be 65.  They work this out by stating that women born between 6th April 1950 and 5th April 1955 will have a state pension age between 60 and 65 (no doubt they will clarify exactly what age for what dates at some point in the next month or two) and those born after 6th April 1955 will retire at 65.

Then, it all changes again for both men and women.

In between 2024 and 2046, the state pension age will increase for everyone from 65 to 68.  The first increase from 65 to 66 will happen between April 2024 and April 2026 (again exact details are not clear yet).  The second increase from 66 to 67 will happen between April 2034 and April 2036.  The third change (I hesitate to say the final change with this government) from 67 to 68 will happen between April 2044 and April 2046.

These changes are already law having been enacted in the Pensions Act 2007.  Why have they been allowed to slip through unnoticed and unfought?

What further changes does our un-elected leader have in store that he isn’t telling? 

Personally, I dread to think. 

The faster we have an election and get someone in charge who actually has the mandate of the country behind them, the better.

If you have any questions or concerns about these changes, I am going to break tradition by asking you to direct them to your local MP rather than answering them myself.  I sincerely hope you have an MP that is planning to stand again at the next election representing you, unlike me, whose MP has made it widely known he is retiring and just pacing himself until the election is called (read “don’t really care about anything or anyone any more” into that).

~Ray[/private_basic]

Ray Stewart
I am a qualified Certified Practising Accountant having passed my final exams way back in 1981. I actually can’t believe that was 37 years ago!! Anyway, I am now in my 60’s and I have been running my own business since May 1983. And before you ask, no, I have never regretted a moment of it! Part of the membership requirements of my professional body now dictate that I spend quite a lot of time on “CPD” - continuing professional education (one of their better ideas) - and over the last two years I decided to study business growth and marketing. I have learnt such a lot and that knowledge has radically changed my old “accountants” approach to business. It has made such a difference to the way I work and operate I feel that I just have to pass on this knowledge. It is simply too powerful to hold back!! - but I will try and do it in simple terms rather than expecting you to spend hours, as I had to, working through the difficult language that trainers seem to use to pass on their concepts. I hope you find the blog a useful resource and interesting place to visit as the months pass. I will do my best to keep up the flow - but if there are any topics you would like me to cover, then please let me know. Ray Stewart
Ray Stewart
Ray Stewart

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