Millions now wait longer for state pension payout

MILLIONS of people will see their state pension age rise from today as the Government attempts to slash the UK’s welfare bill.

People celebrating their 65th birthday will now have to wait longer to qualify for their full £164.35-a-week state pension as delays kick in for men as well as women.

The latest changes affect people born from December 6, 1953, onwards and the move represents the first state pension increase for men since the modern system was introduced in 1948.

Under plans introduced by the coalition Government in 2011, the state pension age for men and women will gradually increase from 65 to 66 over the next two years. The state pension age is then due to increase to 67 by 2028 and 68 by 2039.

Tom Selby, senior analyst at financial advisers AJ Bell, said: “A state pension age increase probably isn’t what most people asked for in their Christmas stocking but that will be the reality for many people who are about to turn 65.

“The short-term impact people’s finances could significant.

At the lower end, a threemonth 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 be on more than £8,000. 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.

“The clear signal from the state is that if you want security in retirement, you need to provide it for yourself.”

Charity Age UK is warning that many people are likely to experience real hardship as a KAREN, now 61, left, found out her state pension age was rising just two years ago.

The Government has said all women likely to be affected by the increase were sent letters informing them of the change.

But the mother-of-two from Blackpool claims she discovered she would have to work until she was 66 via Facebook.

She works as a carer and also suffers from arthritis which has forced her to cut her hours of employment to three days a week.

“I feel very, very upset about these changes, about the unfairness of it all and the fact that I wasn’t properly informed,” Karen said.

“I’ve worked all my life and to face these extra years when I’m exhausted and worn out is an awful reality. I have joined Waspi (Women Against State Pension Inequality) and am working with thousands of others for a fairer deal. All my retirement plans – I wanted to volunteer at a local animal charity – are now on hold and I have to apply for benefits to top up my income. It’s a struggle to survive financially and I feel very let down.” result of the continued increase in the pensionable age.

The speed at which it has risen for women – from 60 in 2010 to 65 now – has left millions with little time to adjust.

More than half of people surveyed for Age UK felt “very negatively” about the changes, with a third saying they had been left positively “angry”.

Caroline Abrahams, Age UK’s charity director, said: “There is still much confusion about the age at which people receive their state pension and our worry is that many who have few resources to fall back on are in for a nasty shock.”

She said people in their 50s and 60s who are unable to work “face the prospect of being totally broke” as they wait.

“The Government needs to do much more to help,” she added.