State Pension Age Increase Brought Forward 7 Years

State Pension Age Increase Brought Forward 7 Years.

In your forties? State Pension Robbery - The government have just robbed around £14,000 from nearly every person in the UK in their forties and you probably don’t even realise it.

Yesterday, Pensions Secretary David Gauke MP confirmed in the House of Commons that the Government will legislate to bring forwards the planned State Pension increase from age 67 to 68 by 7 years.

Currently, it was planned that most people born before 06/04/1977 would reach state pension age at 67, then phased in over one year, anyone born on or after 06/03/1978 would retire at age 68.  Fast forward those plans by 7 years will mean that most people born before 06/04/1970 will reach state pension age at 67, then phased in over one year, anyone born on or after 06/03/1971 will retire at age 68.

Current Rules for most of us

Born Before 06/04/1977 = 67 years old

Born on or after State Pension Age will be:

• 06/04/1977 = 67 and 1 month
• 06/05/1977 = 67 and 2 months
• 06/06/1977 = 67 and 3 months
• 06/07/1977 = 67 and 4 months
• 06/08/1977 = 67 and 5 months
• 06/09/1977 = 67 and 6 months
• 06/10/1977 = 67 and 7 months
• 06/11/1977 = 67 and 8 months
• 06/12/1977 = 67 and 9 months
• 06/01/1978 = 67 and 10 months
• 06/02/1978 = 67 and 11 months
• 06/03/1978 = 68

New State Pension Ages 7 Years Early

This means that under the new proposed changes, state pension increases from age 67 to age 68 will now be phased in as follows:

Born Before 06/04/1970 = 67 years old

Born on or after State Pension Age will be:

• 06/04/1970 = 67 and 1 month
• 06/05/1970 = 67 and 2 months
• 06/06/1970 = 67 and 3 months
• 06/07/1970 = 67 and 4 months
• 06/08/1970 = 67 and 5 months
• 06/09/1970 = 67 and 6 months
• 06/10/1970 = 67 and 7 months
• 06/11/1970 = 67 and 8 months
• 06/12/1970 = 67 and 9 months
• 06/01/1971 = 67 and 10 months
• 06/02/1971 = 67 and 11 months
• 06/03/1971 = 68

By just postponing state pension age by 1 year, we estimate that many in their forties, between the ages of 40 and 47 have just lost around £14,000 as a result of losing one year’s state pension and having to wait an extra year until age 68.

Comment

Co-Director and Founder of this website Joanne Roberts is caught by this, having worked all her life and paid Social Security contributions, with inflation increases assumed at 2.5% pa, we forecast her State Pension at Age 67 would have started at £13,934.82 pa but by being forced to wait another year until age 68, the Government have just ‘robbed’ her of that £13,934.92.  The reality is that when she started working, state pension age for women was at age 60 and now for her it will be at age 68. 

If we project a full state pension entitlement forward with 2.5% pa inflationary increases and you add this up, State Pension at different ages would have been:

• Age 60 - £11,722.88
• Age 61 - £12,015.95
• Age 62 - £12,316.35
• Age 63 - £12,624.26
• Age 64 - £12,939.86
• Age 65 - £13,263.36
• Age 66 - £13,594.95
• Age 67 - £13,934.82

Our Estimated Total State Pension Robbery for Joanne (i.e. a loss) :  £102,412.43

We wonder how many MPs will vote for a reduction in their salaries or pension entitlement or indeed extending the retirement age on their Civil Service Pensions?