The long wait for a pension
Working and in your mid-60s? Better hope your health holds out, says Paul Lewis.
Just as we have got used to the state pension age being 66, it will soon be going up again. The increase will be introduced over two years, starting next April, and reach 67 for anyone born on 6 March 1961 or later.
The change will be phased in, a month at a time. So people born 6 April to 5 May 1960 will reach pension age when they are 66 and one month old. Those born 6 May to 5 June 1960 will reach it at 66 years two months, and so on until those born 6 February to 5 March 1961, who won’t get their pension until they are 66 years 11 months. Those born after that will not be pensioners until their 67th birthday. Altogether they will get the state pension for a year less than those currently reaching 66, and women will be paid seven years’ less pension than those born before 6 April 1950, who qualified at 60.
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The longer wait is not just for the pension. People under pension age without any other income to live on are expected to work or, if they want to claim benefits, to look for work. For people in their mid-60s that will mean searching for a job in an ageist world that values youth over experience; and, for many of that age, doing so with declining health.
If they do not find work, benefits paid to working-age people are less than half those paid to pensioners. The full state pension is normally £11,973 a year for new pensioners (while if they get less and their income is low, then means-tested pension credit makes it up to £11,809). But a healthy single person on Universal Credit gets only £4,802 a year, barely 40% of the state pension.
Similar differentials apply to help with council tax and, for tenants, with rent. Higher amounts of Universal Credit may be paid to people in poor health or with a disability. But recently announced changes will reduce or take away those extras in many cases.
There is not much anyone affected can do about the change – except be born earlier! But if it does affect you or your family, at least you can be prepared. For more information, search “state pension age time-table” online.