Following changes in the UK, women’s state pension age will rise to 65 by November 2018, which is 17 months earlier than was planned under the current legislation. This change will affect women born after 5th April 1953. The state pension age for both men and women will then rise to 66 by October 2020, some 5? years earlier than currently provided for. Commenting on the issue, Minister for Social Care Hon Chris Robertshaw MHK said: “The Island is seeing similar demographic changes to those in the UK and most other developed countries. It is entirely appropriate and financially necessary that given an ageing population and increasing life expectancy, the state pension age should increase in order to manage future pensions liabilities. If that did not happen, future generations of taxpayers would face an unfair burden.” The changes have been made by the UK’s Pensions Act 2011 which received Royal Assent on 3rd November. The changes are necessary to avoid spiralling pension costs for an increasingly ageing population. Life expectancy is currently rising by 1.2 to 1.7 years every decade, which is substantially increasing the associated pensions liabilities. Under the Island’s reciprocal social security arrangements with the UK, the measures will be applied to the Isle of Man, subject to Tynwald approval. Women’s state pension age was previously set to rise from 60 to 65, to equal men’s, between 2010 and 2020, under changes made by the United Kingdom’s Pensions Act 1995. Both men’s and women’s state pension age was then set to increase to 66 between 2024 and 2026, under measures contained in the United Kingdom’s Pensions Act 2007. The 2007 Act also provided for further increases to 67 by 2036 and to 68 by 2046, however it seems almost certain that these rises will now be brought forward. The state pension is provided for on a pay as you go basis. Through their national insurance contributions, today’s workers as well as employers finance today’s pensions. Under the UK Government’s “triple lock guarantee”, the basic state pension is expected to rise by ?5.30 a week – from ?102.15 to ?107.45 – from April 2012. This represents a 5.2% increase, equivalent to the increase in the UK’s consumer prices index (CPI) over the year to September 2011. Under the “triple lock”, basic state pensions are to be uprated each April by the higher of: 2.5%; the increase in average UK earnings; or inflation as measured by CPI. The amount of the increase will be confirmed by the UK Government within the next few weeks. The UK increase must be applied to the Island under reciprocal obligations. The rates of other UK social security pensions and benefits are also currently under review as part of the annual benefits uprating exercise. Any increases will be announced in the Chancellor’s Autumn statement and will come into effect from April 2012. Confirmation of the new state pension age for women born between 6 April 1950 and 5 December 1953 and for men and women born on or after 6 December 1953 is available from the UK Department for Work and Pensions website at http://dwp.gov.uk/docs/spa-timetable.pdf. Anyone wanting more information is invited to get in touch with the Department’s Pensions Forecasting Unit by phoning 685432 or by e-mail at pensionforecasting.dsc@gov.im. ENDS