Pensions in the United Kingdom, whereby United Kingdom tax payers have some of their wages deducted to save for retirement, can be categorised into three major divisions - state, occupational and personal pensions.
The state pension is based on years worked, with a 35-year work history yielding a pension of £203.85 per week.[1] It is linked to wage and price increases. Most employees and the self-employed are also enrolled in employer-subsidised and tax-efficient occupational and personal pensions which supplement this basic state-provided pension.
Historically, the "Old Age Pension" was introduced in 1909 in the United Kingdom (which included all of Ireland at that time). Following the passage of the Old Age Pensions Act 1908 a pension of 5/- per week (£0.25, equivalent, using the Consumer Price Index, to £33 in present-day terms),[2] or 7/6 per week (£0.38, equivalent to £49/week today) for a married couple, was payable to persons with an income below £21 per annum (equivalent to £2800 today), The qualifying age was 70, and the pensions were subject to a means test. The age of eligibility was moved to 65 for men and 60 for women, but, between April 2010 and November 2018, the age for women was raised to match that for men,[3][4] and the retirement age for both men and women is increasing to 68, based on date of birth, and by no later than 2046.[5]
- ^ "The new State Pension". GOV.UK. 1 August 2023. Archived from the original on 30 September 2022. Retrieved 1 August 2023.
- ^ UK Retail Price Index inflation figures are based on data from Clark, Gregory (2017). "The Annual RPI and Average Earnings for Britain, 1209 to Present (New Series)". MeasuringWorth. Retrieved 7 May 2024.
- ^ "The new State Pension". gov.uk.
- ^ "Background relating to changes in State Pension age for women".
- ^ "[ARCHIVED CONTENT] Changes to the planned increase in State Pension age : Directgov – Newsroom". nationalarchives.gov.uk. Archived from the original on 15 October 2012.