Compared to the original proposal, the coalition's plans to raise the state pension age to 66 in 2020 will reduce the negative impact on 245,000 women and 240,000 men, says Age UK.
Age UK has campaigned alongside many thousands of people in later life up and down the country, against the government's proposals to equalise the state pension age. The coalition now plans to raise this to 66 in 2020 which will give a much needed six month respite, this will really help women born between December 1953 and October 1954, who would have had to wait between 18 months and two years longer for their state pension.
These women have already been asked to adjust their financial plans to take into account increases in their state pension age as a result of the last government's pensions changes. Under the coalition proposals, they stood to lose on average £10,000 of state pension income. Having worked hard all their lives, this felt deeply unfair.
We therefore welcome the changes that the government has made, they have listened to our concerns and we appreciate that it is a significant financial commitment from the government, amounting to around £1 billion, in what is a difficult time. Overall, compared to the original proposal, this will reduce the negative impact of the bill on 245,000 women and 240,000 men.
We would have liked the changes being made to have gone further. Planning for an adequate retirement income takes time and if individuals' plans are cut short, it ultimately leads to more people relying on the state or struggling in poverty in later life.
All of us at Age UK would like to thank all the people up and down the country that have helped our campaign.