Steve Hopkins

Not so long ago everyone knew that men received their state pension at 65 and women at 60.  

Nowadays, it's not so simple to instantly know your state pension age (SPA) and I find that a lot of my clients are confused as to when they can expect to be able to start receiving their state pension benefits. All they know is that it's (generally) higher than it was.

The first change occurred a few years ago with the plan to equalize retirement ages, by gradually increasing the state pension age for women to 65 years. However, the jump to ages 66, 67 and 68 soon followed in the Pensions Act 2007. 

Although these retirement ages were only set six years ago, the timing of the increase to 66 has already been changed and the current Pension Bill 2013 wants to also bring forward the increase to 67. 

The increase in the retirement age to 65 for women and everyone to age 66 is already set in legislation. 

* The current legislation (Pensions Act 2007 and Pensions Act 2011) outlines that this affects those born between December 1953 and April 1968 but this age bracket is likely to be superseded by the proposals in the current Pensions Bill.

The new single tier state pension is due to be introduced from April 2016.  This means (for men and women born between April 1951 and April 1953) that men will receive the new single tier state pension of around £144 per week when they retire at 65 but 700,000 women will receive the old state pension - which is likely to be significantly lower for many women - when they retire at their earlier SPA.

The Pensions Bill 2013 is proposing the increase to age 67 is introduced earlier.

This change is very likely to be accepted and the Bill should become final legislation by the end of the year.

A further increase to age 68 was proposed in the Pensions Act of 2007, to happen between April 2044 and April 2046.

Are any future changes planned?  Yes.  The current government is very wary about the state pension age lagging behind whilst longevity improves. So, it's written into the draft legislation in the Pensions Bill 2013 that the state pension age needs to be reviewed on a more structured and regular basis. The first 5-year review will take place in the next Parliament, which begins in 2013.

So I think everybody can see from this that changes to the state pension age is consistently under review and any future changes in government will undoubtedly bring a different slant and opinion on the subject.

If you have any concerns at all as to when you expect to receive your state pension, please consult your Financial Adviser here at Firth & Scott Financial Services Ltd on 0115 8400 333.

Article written by Steve Hopkins FCII

Steve Carson

The first stage in any Inheritance Tax (IHT) planning exercise is to identify whether an actual IHT liability exists (or is likely to accrue into the future) and if so to identify the potential liability.  

Having identified your potential liability, the second stage in the process is to actively reduce the value of your estate by making gifts to make full use of a range of allowances and exemptions wherever possible. 

Justin Hevness

As already mentioned Firth & Scott are approaching our 50th anniversary and with our experience and standing as Chartered Insurance Brokers we're seeing the insurance market change and also the requirements of our clients.

• Properties at risk or in an area of subsidence, heave or landslip
• Homes or businesses in an area susceptible to flooding or that has suffered previous flood damage
• Poor claims records, high or frequent claims
• High profile or high risk occupations, i.e. sports people, celebrities, TV & radio industry 

Annuities

Pensions & Retirement Planning 

Life Assurance

Critical Illness

Income Protection

Investments

Annuities

Deposit Accounts

Mortgage Advice

Tax Planning 

 School & University Fees Planning

Private Medical Insurance

Equity Release