A major change to pensions is set to come into force this year. The State Pension age is scheduled to begin increasing from 66 to 67 this April, with the transition expected to be finalised for everyone across the UK by 2028.
As the Daily Record reports, the Pensions Act 2014 brought forward the State Pension age increase from 66 to 67 by eight years. The UK Government also modified how the State Pension age increase is phased, meaning that instead of reaching State Pension age on a particular date, individuals born between March 6, 1961 and April 5, 1977 will become eligible to claim the State Pension upon turning 67.
It’s crucial to be aware of these upcoming changes now, particularly if you’ve established a retirement strategy. Everyone impacted by alterations to their State Pension age will receive correspondence from the Department for Work and Pensions (DWP) with ample notice.
According to the Pensions Act 2007, the State Pension age for both men and women will rise from 67 to 68 between 2044 and 2046.
The Pensions Act 2014 mandates a periodic review of the State Pension age, occurring at least every five years. The review operates on the principle that individuals should be entitled to spend a certain proportion of their adult life receiving a State Pension.
The UK Government has recently unveiled a new Pension Commission tasked with examining ways to enhance pension savings, with results expected to be released in 2027. Key areas under scrutiny will encompass auto-enrolment contribution rates, increasing savings amongst demographics such as self-employed workers, and an assessment of the State Pension age.
Dr Suzy Morrissey will deliver findings on considerations the UK Government should evaluate regarding State Pension age, whilst the Government Actuary’s Department will compile a report examining the proportion of adult life spent in retirement.
The State Pension age assessment will factor in life expectancy alongside various other elements pertinent to determining the State Pension age.
Following the review’s completion, the UK Government may opt to introduce modifications to the State Pension age. Nevertheless, any recommendations would need parliamentary approval before becoming legislation.
Check your State Pension age online
Your State Pension age is the earliest age you can start receiving your State Pension. It may be different to the age you can get a workplace or personal pension.
Anyone of any age can use the online tool at GOV.UK to check their State Pension age, which can be an essential part of planning your retirement.
You can use the State Pension age tool to check:
- When you will reach State Pension age
- Your Pension Credit qualifying age
- When you will be eligible for free bus travel – this is at age 60 in Scotland
Check your State Pension age online here.
