Institute for Fiscal Studies, or IFS, has called on the DWP to act amid fears people don’t know their state pension age.
DWP urged to send letter to ‘every’ person in UK born before 1976
The Department for Work and Pensions is being told to send a crucial letter to “every” person in the UK born before 1976. The Institute for Fiscal Studies, or IFS, has called on the DWP to act amid fears people don’t know their state pension age.
16 per cent of people whose state pension age is between 66 and 67 either underestimate or are unaware of their correct age, a study from the Institute of Fiscal Studies (IFS) has found.
IFS senior research economist, Heidi Karjalainen, warned just two in three individuals in their early-to-mid-60s accurately report their retirement age as 66, and just 20 per cent of those whose state pension age falls between 66 and 67.
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“This gap in awareness is concerning because it can lead to financial risks,” warned Karjalainen. “And for most, the state pension will represent a large part of their retirement resources,” Karjalainen added.
“Clear and timely communication of any future increases in the SPA is important,” warned Karjalainen.
The IFS has suggested that the government should write to people around their 50th birthday (so born in and around 1976) setting out their currently legislated or likely SPA, and that it should guarantee not to make changes to state pension age for anyone within 10 years of reaching it.
“This would help give people confidence about when they can expect to receive a state pension and facilitate financial planning in the run-up to retirement,” Karjalainen added.
You receive the State Pension when you reach the Labour Party government’s official retirement age.
What that is depends on when you were born. The State Pension age is currently being gradually increased from 66 to 67 between April 2026 and April 2027 for both men and women.
A further rise to 68 is due between 2044 and 2046, Money Saving Expert explains.