GOT your sights set on retiring on a sunny beach? You may need to wait longer than you had hoped.
The national state pension age is set to rise to 68 by 2037 – so here is your definitive guide to when you will reach retirement.
2 The official retirement age will go up to 66 in 2020, 67 by 2028 and 68 by 2048Credit: Getty Images
What is the retirement age in the UK?
The current age for retirement for men is 65, and for many years it was 60 for women, but that is no longer the case.
For women born between April 6, 1950, and December 5, 1953, the age you can receive your state pension is now 64 and is set to rise again in November 2018.
It will increase to 68 for both men and women by 2037.
To calculate the exact date that you will access the money, you can use the state pension calculator.
What is the state pension age?
By November 2018, the age at which both men and women become eligible for their state pension will be 65.
Check using the state pension calculator as to when the changes will come into effect for your birth date.
The state pension age is set to rise even further in the coming years.
2 Millions of Brits in their twenties face having to work until they are 70 under a radical Government review of state pensionsCredit: Getty Images
Will 18-year-olds get a pension too?
Currently, all employers must enroll staff aged 22 and over and earning above £10,000 into a pension.
Every worker fitting this description begins saving into the pension unless they opt out.
But on December 18, 2017, plans were revealed to reduce the minimum age to 18 by the mid 2020s in a move ministers say will affect about 900,000 young people.
The system for 22-year-olds and older has been introduced gradually since October 2012.
Work and Pensions Secretary David Gauke told the BBC’s Andrew Marr Show there had been “greater saving for pensions” since automatic enrolment came into effect.
What is the pensions crisis in the UK?
The UK’s pension crisis hit a new milestone in March 2018 as the Office of National Statistics revealed that liabilities rose to £7.6trillion at the end of 2015.
The figure, which is the total amount promised to pay for Britons’ future retirement income, includes £5.3trillion of pension entitlements that were the responsibility of central and local government, most of which – about £4trillion – came from State Pension entitlements.
The remaining £2.3trillion were private sector employee pension entitlements with £2trillion due to final salary pensions, up from £1.4trillion in 2010.
When will the state pension age change?
The official retirement age will go up to 66 in 2020, 67 by 2028 and 68 by 2037.
This means Brits currently in their 20s face having to work until they are 70 under a radical Government review of state pensions.
The rise in the state pension age has been put forward by seven years, meaning people in their early 40s will be affected.
A review by the Government Actuary’s Department (GAD) commissioned by ministers suggested the official retirement date would have to be brought forward to account for increased life expectancy.
How much is the state pension?
Currently, the full new State Pension is £164.35 per week.
But the actual amount you will receive depends on your National Insurance record.
The State Pension is usually paid every four weeks into an account of your choice.
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Why are some people not paid the full state pension?
Millions of pensioners have been left in “total confusion” thanks to a “contracting out” scheme – which means they no longer qualify for a full state pension.
These people paid a lower rate of National Insurance while working, in exchange for a lower rate of pension.
According to the i newspaper, many pensioners are now claiming this happened without their knowledge – meaning they were unable to properly plan for the future.
Credit: Getty Images
When can I claim my workplace pension?
You can receive money from both the state pension and your personal or workplace pension pot.
With your personal and workplace pension, the age you can access this depends on the scheme, but is usually after 55.
You may be able to take money from your work pension before 55 if:
you are retiring due to illness
you had a right to under the scheme you joined before April 6, 2006
your company offers to help you get money out earlier. This could be in the form of an unauthorised payment, which is subject to 55 per cent tax
your life expectancy is under a year. See full conditions on the government website
What happened in the state pension blunder?
A Government blunder has seen more than 360,000 people receive an incorrect forecast state pension forecast.
Pensions Minister Guy Opperman has admitted there are “significant problems” after people were issued with online forecasts saying they will be getting a higher amount than they are actually entitled to.
This is due to problems with HM Revenue & Customs data on National Insurance records, which are used to calculate how much state pension we each get.
You need 35 full qualifying years to receive the full state pension of £168.60 per week.
In some cases, forecasts were more than £1,500 a year higher, according to former pensions minister Steve Webb who has been investigating this issue.
After he raised the problem with the Department for Work and Pensions who played it down as isolated errors, he contacted the Minister for Pensions asking him to investigate.
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