Major State Pension change for those born in specific years | Personal Finance | Finance
The State Pension age in the UK is scheduled to rise gradually from 66 to 67 from this April, with the full increase expected to apply to all men and women by 2028. This change to the official retirement age has been planned since 2014, with a further increase from 67 to 68 planned between 2044 and 2046.
The Pensions Act 2014 brought forward an increase in the State Pension age from 66 to 67 over eight years. The UK Government has also arranged for the State Pension age increase to be phased in; This means that instead of reaching State Pension age on a specific date, people born between 6 March 1961 and 5 April 1977 will be eligible for a State Pension when they reach the age of 67.
It’s vital to stay informed about these upcoming changes, especially if you already have a retirement plan. All those affected by changes to State Pension ages will receive a letter from the Department for Work and Pensions (DWP) well in advance.
Under 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 requires the State Pension Age to be reviewed regularly at least every five years.
These reviews will be based on the principle that individuals can spend a certain part of their adult lives receiving a State Pension. The government has recently announced plans to establish a new Pensions Commission which will investigate ways to boost retirement savings, with its findings expected to be published in 2027. Daily Record.
The commission will examine issues such as automatic enrollment savings rates, increasing savings in groups such as the self-employed and reviewing the State Pension age. Dr Suzy Morrissey reports on the factors the UK Government should consider in relation to State Pension age, while the Government Actuarial Department will produce a report on the proportion of adult life spent in retirement.
The review of the State Pension age will take into account life expectancy, as well as a number of other relevant considerations in determining the State Pension age. Following the review report, the UK Government may choose to make changes to the State Pension age.
However, any proposed changes must be approved by Parliament before becoming law.
Check your State Pension age online
Your State Pension age is the earliest age at which you can start receiving your State Pension. It may differ from the age at which you can access a workplace or private pension.
The online tool at GOV.UK allows people of all ages to check their State Pension age, an important step in retirement planning. You can use the State Pension age tool to check:
- When will you reach State Pension age?
- Your eligibility age for Pension Credit
- When will you be eligible for free bus travel?
Check your State Pension age online Here.
