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Planned Changes to Pension Age will Affect Millions
31/01/2011
The latest Pensions Bill states that the retirement age for women will grow to 65 by the year 2016, four years earlier than the age previously announced.
For both sexes, retirement age will grow to 66 by 2020.
This change in pensionable age will impact approximately 5.1million people, the majority being women.
For women, this change will impact them financially by introducing a loss of £6,300 per year. Those who work for the full 6 years will, on average, lose £37,800. Because women will continue to pay taxes on their income throughout this period, the loss is closer to £50,000.
Ros Altmann, of campaign group Saga, condemned the changes as unfair and disproportionate. She said: “The Government has suddenly moved the goalposts on them. They will not have time to make appropriate financial arrangements to offset those losses.”
Homeowners aged over 55 years who are affected by these changes and would like to know how much money the value of their property could release to increase their income, can find out by contacting therightequityrelease.co.uk for equity release advice.
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