The UK statutory retirement age has changed significantly over the past decade, particularly for women, and workers need to ensure they have paid in long enough to be entitled to the full amount in retirement
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The cliché goes that the only things in life that are guaranteed are death and taxes.
But in between lies the promised land of retirement – an event marked for many by reaching statutory retirement age.
With the age of entitlement to a UK state pension falling further as life expectancy increases, experienced workers will no doubt be interested in how much to expect and when they’re going to ditch work clothes forever.
The state pension probably won’t be the only money people will receive as they age, but here’s an indication of what to expect before considering a private pension.
What is the current statutory retirement age?
The earliest people in the UK to claim their state pension depends on when they were born.
Men and women who are currently 66 years of age are currently eligible for a statutory pension. But the retirement age is rising.
The statutory retirement age is set to rise to 67 between 2026 and 2028.
It is eventually set to rise to 68, with the government having signaled its intention to put this into effect between 2037 and 2039, although an exact timeline has not been confirmed.
In the last 12 years, the retirement age has changed significantly, especially for women.
Before 2010, women could claim their pension at age 60, but it increased over the eight years to 2018 and now increases gradually, along with men, to age 68.
Am I entitled to a UK State Pension?
Under the system in place since 2016, to be eligible for a state pension upon reaching the age-relevant milestone, a person must have paid National Insurance (NI) contributions for at least 10 years.
To fully benefit, an individual must have paid or been credited with NI contributions for at least 35 years.
What is the statutory pension?
The full state pension under the 2016 scheme is £185.15 per week in 2022/23, giving an annual income of £9,627.80.
However, the final amount could be lower if the full 35 years of NI contributions have not been paid.
Those with 30 years of contributions will receive £158.70 per week this financial year, while those with 10 years of contributions will have the equivalent of £52.90 per week paid into their accounts monthly.
State pensions are set to increase in line with the inflation rate in April 2023.
According to September CPI figures, pensioners are expected to get an increase of around 10%, adding an extra £960 a year to the new state pension, which could help some struggling pensioners during the cost of living crisis.
Can I retire at retirement age?
Retirement and retirement age are not the same – when someone stops working, it depends on their own financial situation.
Individuals with generous public or private-sector pension plans, higher incomes, or with significant savings may choose to retire before they are eligible for the state pension.
Likewise, employees can continue to be employed after they have reached statutory retirement age but will need to consider the tax implications as the monthly payments count towards an individual’s annual tax free amount of £12,570.
Because all employees – no matter how small the company they work for – are now automatically enrolled in occupational pension plans, those who have been employed since 2010 can expect to receive some type of non-state pension to compensate for what they earn through NI contributions have earned to top up.
https://www.mirror.co.uk/money/what-current-state-pension-age-27339760 What is the current statutory retirement age and how much do you get paid monthly?