State pensions are 'a balance act'

The minister of state for pensions has admitted that while few people will have their state pension put back by more than a year, it will have a dramatic impact on those looking for the best savings rates for retirement.

As a way of creating equality among men and women, the age Brits will receive the state pension has increased from 60 for women, to 65 by 2018, the same age as men.

By 2020, the pension age for both men and women will have been raised again to 66.

"I'm not going to belittle the impact of the change. Of all the people affected, nine out of ten are affected by a year or less, so we're talking a relatively small proportion of the people affected, but certainly a significant number of people," Steve Webb told BBC Radio 4 Money Box.

He said that the changes need to strike the right balance to ensure the need to move quickly on the issue does not severely affect too many people.

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2011-10-17 17:04:07 © Moneyextra.com