The government is taking steps to simplify the UK state pension and to change the state retirement age. Life expectancy in the UK has continued to increase and it is perhaps not surprising that the state pension age needed to increase to reflect our increased longevity and to promote sustainability of the state pension.
Changes to state pension:
The government introduced the new flat rate (single-tier) pension in April 2016. The amount of pension is approximately (2020/21) £175.20 a week (£9,110.40 per year) and will rise annually under the current 'triple lock' government promise.
People who reached State Pension age before the introduction of the single-tier pension continued to receive their State Pension in line with the previous rules.
Changes to state pension age:
The government has proposed that:
- people born between 6 April 1960 and 5 March 1961 will reach State Pension age between 66 and 67
- people born on or after 6 March 1961 will reach State Pension age when they’re 67 or older
This change hasn’t been approved by Parliament yet.
Under the current law State Pension age will already increase to:
- 67 between 2034 and 2036
- 68 between 2044 and 2046