Some Carer and Pensions facts

PENSIONS

Women in their 50s will have to work a year longer to retire at 66 from 2020. The Government is also thinking about raising the retirement age to 67 in 2026, affecting millions more. The reforms of public sector pensions will save £5.8bn, with 65% of which will be paid for by women. A rise of 3 per cent in contributions will cost £450 a year for a woman earning just £15,000.00

And as our population ages, it will only get worse. 11 million people that are alive today in our country will live to 100 years old.

In 30 years from now, the number of over 65s in Britain will have increased by 6million, or more than 50%.

And by 2041, there will be just 2.5 workers in this country for every retired person. thus increasing the spend on the pensions bill and health and care provided to the elderly.

CARERS

More than 6m people care for a friend or relative, and 69 per cent of them are women. They can claim an allowance only if the person they care for has Disability living Allowance, but this is being cut by £1.4bn and also fewer people will be able to qualify for it.

The 2011 Budget for Pensioners 

In the 2011 Budget, pensioners saw up to £100 knocked off their winter fuel assistance payments, whilst the next generation may probably have to wait until age 70 or 71 for a State pension.

Additionally, the Government is abandoning bonus winter fuel payments given to pensioners since 2008.

Pensioner households will receive £200 this winter (£300 where someone is aged over 80), down from £250 and £400 in 2010.

But the Chancellor did preserve the link between retail prices and the higher age related personal tax allowances for pensioners. The 2011 Budget also committed the Government to move towards a single State pension of £140.00 a week.

This will replace a jumble of existing State pensions and means-tested benefits, but will only go to those retiring in the future. Today’s pensioners will continue to receive income under the existing system.

A flat rate pension is deemed good for those approaching retirement as this will give them some financial certainty. A move to a universal payment will also mean the end of contracting out of the State Second Pension, raising National Insurance bills for millions of members of final salary company pensions.

 The Chancellor also stated he wanted to create a new ‘automatic system’ to link State pension age to changes in longevity. The State pension age is already rising to 66 by 2020, with increases to 67 by 2036 and to 68 by 2046 also planned.

 But an automatic mechanism could accelerate the change and push State pension age to nearer 70. This will also hit most public sector workers as their retirement age in future will be linked to State pension age.

Some Insurers say the average life expectancy for a man aged 65 has risen by more than five years over the past 30 years, suggesting the State Pension Age might need to rise to 71 for those born in 1970.