Saturday, December 7, 2019

State pension age is increasing next month - who will be affected by the latest change?

The state pension age has been rising, and is continuing to do so. According to the government timetable, it is set to reach 66 by October 2020, under the Pensions Act 2011. This is ahead of further increases.

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Under the Pensions Act 2014, the state pension is set to rise from 66 to 67 between 2026 and 2028.

A timetable based on the current law details that an increase from 67 to 68 is expected under the Pensions Act 2007, between 2044 and 2046.

Due to the changes, a number of people born in the 1950s have reached state pension age on a date which would otherwise have been later than previously expected.

The next date on which state pension age is reached is next month, on January 6, 2020.

This will affect people with the date of birth from May 6, 1954 to June 5, 1954.

People born in this age bracket will reach state pension age on January 6 next year.

It’s possible to check a person’s state pension age online, using the “Check your state pension age” tool on the government website.

It explains that people who are born on May 6, 1954, have a state pension of 65 years, eight months.

It’s possible for these people to claim their state pension now, and their payments will start after they reach state pension age.

Alternatively, they have the option to defer claiming the state pension.

At the other end of this age group, people who are born on June 5, 1954, have got a state pension age of 65 years, seven months, and one day.

They too can claim their state pension now, and the payments will start after the claimant reaches state pension age.

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How much is the state pension?

The full new state pension is currently £168.60 per week.

However, the actual amount depends on one’s National Insurance record.

The Department for Work and Pensions (DWP) explains that under transitional arrangement for the state pension, not everyone will get this amount. Some people will receive more and others less.

Meanwhile, the basic state pension is currently £129.20 per week.

The state pension is set to rise in April 2020, by 3.9 percent.

The payment increases each year, according to the triple lock.

This means that it rises each year by whichever is the highest out of the average percentage growth in wages in Great Britain, the percentage growth in prices in the UK as measured by the Consumer Prices Index (CPI) and 2.5 percent.

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