The Government’s changes to the State Pension in recent years have left many wondering if they’ll ever get one. Not only has the state retirement age increased beyond 65 but the three elements that made up the State Pension have been merged into the new State Pension from 6th April 2016.
The impact has been felt more by women born after April 1953 some of whom have seen their state retirement age increase twice. Not only have they to wait longer to receive it they’re expected to continue paying national insurance, even if it doesn’t increase their basic state pension. A woman born in 1956 could now end up paying national insurance for over 50 years.
This proposal to allow people who have paid national insurance for 45 years to draw their state pension makes sense.
Clive Thompson Dip PFS | Financial Planner
“It is reasonable to consider raising the state pension age as overall life expectancy goes up – but, as a blanket approach, it risks leaving many people facing serious problems in later life through no fault of their own. In fact, as the state pension age climbs ever higher, many of those with lower life expectancies – who are also likely to be on lower incomes – may end up with little or no time left in retirement to enjoy.”