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Women's State Pension Age Increasing

The government has stood firm over its plans to raise the women’s state pension age to 66 by 2020, although there will be transitional arrangements, which means that the State Pension Age for both men and women will increase to 66 by April 2020 with the State Pension Age for women reaching 65 by November 2018.

The government has stood firm over its plans to raise the women’s state pension age to 66 by 2020, although there will be transitional arrangements, which means that the State Pension Age for both men and women will increase to 66 by April 2020 with the State Pension Age for women reaching 65 by November 2018.

Although the Pensions secretary Iain Duncan Smith said there would be 'transitional arrangements' to help some women cope with the steep rise in the State Pension Age it would not involve a compromise on the rise to 65 by 2018.

The measure is expected to generate an extra £5 billion a year, which in these difficult times, is the main focus of the Government. Following the faster increase to 66, the government is also considering future increases to the State Pension age linked to longevity, so watch this space.

The message, therefore, is that making your own arrangements and ensuring that any Pensions and Investments you already have work as hard as possible is a must for everyone.

Unfortunately, it is the accelerated speed of the change that is the problem. Women who are only a few years away from retirement, possibly with retirement plans in place, now find they may well have to work several years longer or reduce their standard of living in retirement. They will be losing at least £5,000 each year with only a relatively short time to adapt to this.

More than ever, everyone over the age of 50 should seek independent financial advice to find out what actions they should be taking now.

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