Autumn budget 2021 pension predictions (Continued…)
Rises to state pension age – There are widespread fears over potential increases to the age at which people can claim their state pension.
At the moment, people born on or before April 5, 1970 can claim their state pension once they reach 66 years of age.
If you were born between April 6, 1970 and April 5, 1978 you state pension age will be somewhere between 67 and 68 depending on your date of birth – you can find out the exact age here.
For anyone born after April 6, 1978 the state pension age is currently 68, however by 2050 the age could shift up to 69.
Experts warn that the rising age is unfair for people with shorter life expectancies. Life expectancy varies significantly throughout the UK dependent on various factor.
For instance, someone living in the North East has an average life expectancy of 78, compared to 80.9 for someone living in London.
Raj Mody, global head of pensions at PwC, told the Daily Mail: “A possible alternative to announce at the Budget, instead of a one-size-fits-all delay to the retirement age, could be a flexible “state pension window” which retains the option for people to access some level of state pension from 65 or 67, with incentives for others to take it later.”