The Cost of Getting Older

Currently, the state pension age (SPA) is 65 for men and 60 for women and to qualify for a full basic state pension men need 44 years of NICs and women 39 years. This is, however, about to change due to a piece of legislation implemented in 1995.

As from April 2010 both men and women will only need 30 years of NICs to qualify for a full basic state pension. Also, between April 2010 – April 2020, the SPA for women will gradually increase until it reaches 65. From April 2024 – April 2046 the SPA will steadily rise to 68 years both men and women.

The effect of these changes is that although you may qualify for the state pension quicker, you may have to wait longer to get your hands on it. NICs will also be affected as the age of exemption from paying NICs, currently 65 for men and 60 for women, will also rise in line with the state retirement age.

Those men and women that have already reached retirement age and in receipt of a state pension at 5th April 2010 will not be affected by the changes.