Wednesday, 9 May 2012

8 million face state pension cut

The Queen's Speech mentions the forthcoming Pensions Bill which will set a much earlier date for the planned rise in state pension age to 67.

So it's worth recapping what the effect of the change will be.

*Pension age would go up from 66 to 67 between 2026 and 2028, rather than 2034 to 2036.

*8 million people would be affected, those born between 6th April, 1960 and 5th April 1969.

*They'd lose up to 4% of the pension income they might expect over their lifetimes.

*The Department for Work and Pension would save £58.9bn and there'd be a gain of £9.7bn from tax and National Insurance as people had to work a year longer.

All this is from the DWP's own analysis.


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