Anyone born from December 6, 1953 onwards will now have to wait longer for their pension pot under the new rules, which sees the state pension age increase from 65 to 66. It means yesterday marked the last day in which hard-working Britons could claim their state pension at the age of 65. While the state pension age has increased from 60 to 65 for women over an eight-year period, the new process marks the first increase for men since the pensions system began. New rules starting today mean the state pension age for both men and women will gradually increase from 65 to 66 from now until 6 October 2020.

But the process has also been slammed as a “cruel lottery” as state pension commencement is being introduced in increments.

Those with a birthday between December 6, 1953 to January 6, 1954 could face up to a three-month wait to retire as the date they can claim their pension pot has been set at March 6, 2019.

The state pension age is due to rise again to 67 from 2026.

AJ Bell senior analyst Tom Selby said the long wait to retire could have a costly outcome for those going into their golden years.

He told ProfessionalAdvisor.com: “At the lower end, a three-month rise in the state pension age could cost someone over £2,000 in retirement income.

“Those who have to wait a full year longer could miss out on over £8,000 in state pension.

“While this might feel like a cruel lottery for those immediately affected, younger generations will need to prepare for rises in the state pension age to 67 and 68.

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“Indeed, if life expectancy continues its long-term trend upwards, a state pension age of 70 could well be on the cards.”

According to a survey by Age UK, 58 percent of people do not support the changes while only 7 percent feel positive.

Caroline Abrahams, Age UK’s charity director, said: “At Age UK we think the most pressing and immediate concern is the hundreds of thousands of people in their 50s and 60s who are unable to carry on working today, and who are really struggling financially as a result.

“We are thinking, for example, of life long manual workers crippled by arthritis and carers who have given up work to look after an ailing partner or parent, and who face the prospect of being totally broke as they wait to claim their state pension.

“The Government needs to do much more to help people in this position now.”

Express.co.uk has contacted the Department for Work and Pensions for comment.

Source
Daily Express :: Finance Feed
Finance

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