State Pension Age keeps rising

December 12th, 2013  |  Published in Uncategorized

State Pension Age

Forget it, work ’till you drop. Every year the wife and I get nearer to retirement, our pension age seems to move at least one year further away, the wife’s retirement age has gone from 60 to 66. Not that I’m bitter or anything….

The State Pension Age (SPA) is currently being aligned at 65 for men and women who are reaching that age in the next few years. The SPA will then rise for both men and women to 66, and increase to 67 for those that reach that age between 2034 and 2036. The government is reviewing how quickly the state pension age should be changed. It is likely to accelerate the SPA to age 67, 68 and then to 69 for people who are currently in their early 30’s.

NI Contributions Over SPA

Individuals who retire today must have an NI contributions record showing 30 full years of contributions in order to receive the full state pension. However, once a person reaches state pension age (SPA) they are barred from making further NI contributions, even voluntarily.

From October 2015 the government will permit people who have reached SPA to make voluntary NICs to top up their NI contributions record for state pension purposes. This will apply to people who reach SPA before 6 April 2016.

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