Pensions could be about to go under yet another government shakeup
Pension rules could be about to go under another massive shake up that could see retirement age rise from 67 to 68 in the next 13 years.
The state pension age is currently 65 for men and 63 for women, rising in stages to 67 for both sexes by 2028.
And after the recent Cridland Review into how to make savings, the pension age is due to go up to 68.
But what ministers can’t decide on is when the latest change – which was originally due to be rolled out between 2044 and 2046 – will go into force.
Pension money is due to go up under the review
In the most radical scenario, the change would now happen in 2030 – meaning everyone currently under 54 would have to work a year longer than they had expected.
But even in the best-case option, the rise would be brought forward five years to 2041 – affecting people in their early 40s.
The latest review, by the Government Actuary’s Department (GAD), is deigned to make the pensions system more affordable.
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Lib Dem leader Tim Farron accused ministers of “creating another pensions bombshell for another generation of older people.”
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But critics have savaged the potential options, as Lib Dem leader Tim Farron accused ministers of “creating another pensions bombshell for another generation of older people.”
While former pensions minister Baroness Altmann said it would be grossly unfair to expect people to work even longer when many in ill-health face such a short retirement.
A Government source said nothing had been decided, but anything suggested by the review was “within scope”.
The state pension age is currently 65 for men and 63 for women
Pension changes have caused uproar among many workers, as it has been revealed millions currently in their twenties could face working until they are 70.
But there is some good news, as pensions are due to go up for those who reach retirement age after April 2016.
In the current tax year, the basic state pension for those who reached state pension age before April 2016, is a maximum of £119.30 a week, or £6,204 a year.
While the new state pension, for those who reached state pension age after April 2016, is a maximum of £155 per week, or £8,060 a year.