State pensioners with June and July birthdays are being warned they may have to wait longer for their state pension under new rules from the Department for Work and Pensions (DWP). The DWP is gradually increasing the state pension age from 66 to 67.
Changes for Those Born Between June 6 and July 5, 1960
Under the change, people born between June 6 and July 5, 1960, will now have to wait until they turn 66 years and three months before they can claim their state pension. Previously, they would have qualified at their 66th birthday.
Institute for Fiscal Studies Weighs In
The Institute for Fiscal Studies (IFS) has commented on the changes, stating: "There is a good case that as the SPA rises, this cliff edge in means-tested support should be made less stark by providing additional means-tested support for people just under the SPA."
The IFS added: "In effect, this would mean channelling a small fraction of the public finance savings from a higher SPA, to target support to groups who are least able to respond by extending their working life. We argued in the IFS Pensions Review that additional support of this kind could be particularly important in maintaining support for the principle that increased life expectancy should result in a higher SPA."
Focus groups commissioned as part of the IFS Pensions Review found public support for additional help for some of those most affected by SPA increases. The IFS also noted: "A final consideration for the government should be how much notice to give people about changes in the SPA. Previous independent reviews have suggested that people should have at least 10 years’ notice of any changes to their SPA. This would mean that any changes happen before most people have left paid work to retire, and would give people time to adjust their saving and retirement plans."
The IFS concluded: "If the government does want to bring forward the increase in the SPA to 68 to the late 2030s (suggested by the 2017 independent review), it would need to do so promptly to maintain the suggested principle of 10 years’ notice of any change."
DWP Timetable for the State Pension Age Rise
- Born April 6, 1960, to May 5, 1960 – State Pension age: 66 years and 1 month
- Born May 6, 1960, to June 5, 1960 – State Pension age: 66 years and 2 months
- Born June 6, 1960, to July 5, 1960 – State Pension age: 66 years and 3 months
- Born July 6, 1960, to August 5, 1960 – State Pension age: 66 years and 4 months
- Born August 6, 1960, to September 5, 1960 – State Pension age: 66 years and 5 months
- Born September 6, 1960, to October 5, 1960 – State Pension age: 66 years and 6 months
- Born October 6, 1960, to November 5, 1960 – State Pension age: 66 years and 7 months
- Born November 6, 1960, to December 5, 1960 – State Pension age: 66 years and 8 months
- Born December 6, 1960, to January 5, 1961 – State Pension age: 66 years and 9 months
- Born January 6, 1961, to February 5, 1961 – State Pension age: 66 years and 10 months
- Born February 6, 1961, to March 5, 1961 – State Pension age: 66 years and 11 months
- Born March 6, 1961, to April 5, 1977 – State Pension age: 67
