State pension age rising next week – when you can claim and how much you get

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State pension age rising next week - when you can claim and how much you get

Millions of people have to wait longer to retire due to the higher retirement age.

As of Tuesday, October 6, the state retirement age for men and women will be 66 years.

Further increases are planned. The state retirement age will be raised to 67 between 2026 and 2028. Between 2037 and 2039 it will be increased again to 68 years, seven years earlier than planned.

Shadow Pensions Secretary Debbie Abrahams said the increase to 68 is an “amazing continuation of austerity” and will require 34 million people to work longer than Labour’s plans to keep the retirement age at 66.

Labor and Pensions Minister David Gauke said the government needs to find a balance between funding the state pension and being fair to future generations of taxpayers.

He pointed out that, due to increased life expectancy, those affected are still expected to do more than previous generations.

When can you apply for your pension?

The next week’s change affects those born between October 6, 1954 and April 5, 1960. They all receive their state pension on their 66th birthday.

If it rises to 67, it affects people born between April 6, 1960 and March 5, 1961.

Under the Government State Pension Schedulereceive your state pension on the dates below:

Date of birth – date of the age of the state pension

April 6, 1960 – May 6, 1960 – 66 years and 1 month

May 6, 1960 – June 5, 1960 – 66 years and 2 months

June 6, 1960 – July 5, 1960 – 66 years and 3 months

July 6, 1960 – August 5, 1960 – 66 years and 4 months

August 6, 1960 – September 5, 1960 – 66 years and 5 months

September 6, 1960 – October 5, 1960 – 66 years and 6 months

October 6, 1960 – November 5, 1960 – 66 years and 7 months

November 6, 1960 – December 5, 1960 – 66 years and 8 months

December 6, 1960 – January 5, 1961 – 66 years and 9 months

January 6, 1961 – February 5, 1961 – 66 years and 10 months

February 6, 1961 – March 5, 1961 – 66 years and 11 months

Mar. 6, 1961 – April 5, 1977 – 67

There are a few exceptions, the government says. To calculate a person’s retirement age:

  • A person born on July 31, 1960 will be considered 66 years and 4 months old on November 30, 2026.
  • A person born on December 31, 1960 will be considered 66 years and 9 months old on September 30, 2027.
  • A person born on January 31, 1961 will be considered 66 years and 10 months old on November 30, 2027.

How much is the state pension?

In April 2020, the state pension rose 3.9 percent, the largest increase since 2012.

A full increase in the new state pension was recorded from £ 168.60 to £ 175.20 per week.

The state pension increases in accordance with a triple lock policy.

Since 2011, the triple lock regulation means that the state pension increases depending on which of these three things is highest:

  • 2.5 percent
  • Earnings growth
  • Inflation rates

However, the effects of the coronavirus have created an imbalance. With both profits and inflation falling during the Covid crisis, the highest of the three factors above is the option to increase it by 2.5 percent.

The existing regulations would therefore mean a sharp increase in the state pension by 2.5 percent in April 2021.

And then if wages recover, when the economy recovers in 2022, that would be the highest of the three options and it would trigger an even bigger hike in state pensions in April this year.

Resolution Foundation’s Laura Gardiner believes both increases will add 7.6 percent to pensions.

That would increase the state pension to more than £ 188 per week by 2022, which is an additional £ 54 per month.

She said: “The triple lock will increase the state pension by 7.6 percent between 2020 and 2022.

“That’s at least three times the expected rise in prices or wages that workers are likely to see.

“Such a sharp increase is particularly difficult to justify when it comes to working-age families, who have been hardest hit by the UK employment crisis.

“The government should break the triple lock and move to a much clearer policy of setting a clear target for the value of the state pension and then keeping it there through a smoothed income link.”

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The Office for Budgetary Responsibility (OBR) has forecast even greater increases.

In the next two years alone, the flat-rate state pension will increase 21 percent – first 2.5 percent in 2021 and then 18.3 percent in 2022 in line with their projections of the rise in median income as the economy recovers.

Pension payments would then rise from £ 175.20 per week to £ 212.45 per week, almost £ 150 per month higher.

  • You can Check your state pension online using the government calculator to get a forecast of how much you might get. The service also confirms when you will reach the statutory retirement age under applicable law.

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