Pension ages set to rise

Retirement age will reach 66 for men and women by 2020

Retirement age will reach 66 for men and women by 2020

It has been revealed that pension ages will rise to 66 by 2020, for both men and women, for women; six years earlier than was previously planned.

The previous Labour government  announced plans for the state pension age or women to face rises from 60 to 65 by 2020 and the age of 66 reached by 2026.

However, the latest Bill has revealed that women will retire at 65 by 2016 and the age will rise to 66 during the following four years.

Pension ages rises as a whole will affect around 5.1 million people – most of them women. Millions of women are set to lose almost £38,000 as a result of the newly passed Bill.

Campaign groups have accused ministers of ‘moving the goalposts’ for a generation of women in their fifties.

Thousands have complained to ministers claiming their plans for financial safety and for retirement have been destroyed.

The changes will mean that on average women will lose £6,300 for every extra year they work. Those having to work the full extra six years will lose an average of £37,800.

However, the figure could reach nearer £50,000 when extra tax is considered on longer earnings.

Saga campaign group member Ros Altman condemned the changes as “unfair and disproportionate, the Government has suddenly moved the goalposts on them.

“They will not have time to make appropriate financial arrangements to offset those losses.”

The Government is set to save £30 billion on pensions and other retirement benefits between the years of 2015 and 2025.

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