State pension age hits 66, set to rise further, £175.20 a week

0
7

LONDON: The age at which most people start to receive the state pension has now officially hit 66 after steady rises in the qualifying age in recent years. Men and women born between 6 October, 1954, and 5 April, 1960, will start receiving their pension on their 66th birthday. For those born after that, there will be a phased increase in state pension age to 67, and eventually 68.

It comes as the chancellor vowed the “triple lock” pledge is safe. Under this pledge, the state pension increases each year in line with the highest of average earnings, prices (as measured by inflation) or 2.5%.

Coronavirus and the furlough scheme is set to distort the calculations for average wages and could mean one bumper year of pension increases. This has led MPs and economists to discuss how this could be smoothed out.

But, when asked by LBC radio whether the triple lock was safe, Chancellor Rishi Sunak said: “Yes, our manifesto commitments are there and that is very much the legislative position. We care very much about pensioners and making sure they have security and that’s indeed our policy.” The full state pension for new recipients is worth £175.20 a week. To receive the full amount, various criteria including 35 qualifying years of national insurance must be satisfied.

Giving the details, BBC has reported that the age at which people receive the state pension has been increasing as people live longer, and the government has plans for the increase to 68 to be brought forward. However, the increases have been controversial, particularly for women who have seen the most significant rise.

Campaigners claim women born in the 1950s have been treated unfairly by rapid changes and the way they were communicated to those affected. Younger workers have also been urged by pension providers to consider their retirement options, with a strong likelihood of state pension age rising further as time passes. “As people live longer, it’s clear many will also have to work for longer,” said Pete Glancy, head of policy at Scottish Widows.