The Chancellor of the Exchequer has announced in the Autumn Statement 2013 that review of the current State Pension Age ("SPA") framework will take place early in the next Parliament. The Chancellor provides that the increase in the SPA to 68 is likely to be brought forward from the current date of 2046 to the mid 2030s, and is likely to increase further to 69 by the late 2040s.
The Chancellor also announced a new scheme which will be introduced in October 2015 to allow current pensioners, and those who reach SPA before the introduction of the new single tier pension, to top up their Additional State Pension through a new class of voluntary National Insurance Contributions. Legislation to introduce this scheme will be brought forward at the earliest available opportunity.
Additionally, the Autumn Statement provided details of "Fixed Protection 2014" - a protection that will be available following the reduction in the lifetime allowance from £1.5 million to £1.25 million on 6 April 2014, on which we reported in our June Update. The Government has also confirmed the details of "Individual Protection 2014" on which we report below. For further information click here.