The current State Pension age is 66, but it is due to rise to 67 and then to 68
The Pensions Act 2014 accelerated the increase in the State Pension age from 66 to 67 by eight years(Image: Natalia Gdovskaia via Getty Images)
The State Pension age in the UK is set to increase from 66 to 67 starting next year, with the change expected to be fully implemented for both men and women by 2028. This adjustment to the official retirement age has been on the cards since 2014, with a further increase from 67 to 68 planned between 2044 and 2046.
The Pensions Act 2014 fast-tracked the rise in the State Pension age from 66 to 67 by eight years. The UK Government also modified the phasing of the State Pension age increase, meaning that individuals born between March 6, 1961, and April 5, 1977, will be eligible to claim the State Pension when they reach 67.
It’s vital to be aware of these upcoming changes, especially if you have a retirement plan in place. Those affected by changes to their State Pension age will receive a letter from the Department for Work and Pensions (DWP) well in advance. For money-saving tips, sign up to our Money newsletter here
Under the Pensions Act 2007, the State Pension age for both genders will rise from 67 to 68 between 2044 and 2046.
The Pensions Act 2014 requires a regular review of the State Pension age at least every five years. These reviews will follow the principle that individuals should spend a certain proportion of their adult life receiving a State Pension.
A review of the proposed increase to 68 is due before the end of this decade. The Conservative government had initially planned for it to take place two years after the general election, which would have been in 2026.
The review of the State Pension age will take into account life expectancy and other relevant factors. Following the report from the review, the UK Government may decide to make changes to the State Pension age.
However, any proposed changes would need to be approved by Parliament before they become law.
Your State Pension age is the earliest age at which you can start receiving your State Pension. This might not be the same as the age at which you can access a workplace or personal pension.
Anyone, regardless of their age, can use the online tool on GOV.UK to check their State Pension age, which can be an essential part of retirement planning. 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
Check your State Pension age online here.
HM Revenue and Customs (HMRC) recently announced that over 10,000 payments worth £12.5 million had been made by people using the new digital service to boost State Pensions since its launch last year.
However, those looking to maximise their retirement income through the contributory benefit only have a few weeks left to fill any gaps in their National Insurance (NI) records dating back to 2006.
Ordinarily, individuals have the opportunity to make voluntary contributions for the previous six tax years, but after the April 5 deadline this year, the standard six-tax year restriction will be reinstated.
In a move by the previous government in 2023, the cut-off for making voluntary National Insurance (NI) contributions was extended until April 5, 2025, for those affected by the new State Pension transition arrangements, which span from April 6, 2006, to April 5, 2018.
This extension has afforded people extra time to consider their choices and contribute if necessary. Men born on or after April 6, 1951, and women born on or after April 6, 1953, can make voluntary NI contributions to boost their New State Pension.
For some, National Insurance credits might be more beneficial than contributions, so it’s crucial to explore all available options.
Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, the online investment platform, said: “People typically need at least 10 qualifying years of NI (National Insurance) contributions to receive any state pension at all and at least 35 years to receive the full new State Pension – though they don’t need to be consecutive years.
“Plugging gaps can be quite an expensive process, so it is important to assess whether you actually need to buy back any missing years. This will depend on how many more years you plan to work, and whether you are eligible for NI tax credits, which fill the gaps, such as those who have been sick, were unemployed or took time out to raise a family or care for elderly relations.
“Plugging gaps in your record is relatively straightforward since the government rolled out its new NI payments services in April last year – a State Pension forecast tool that has been checked by 3.7 million since its launch.”
She added: “People simply need to log into their personal tax account or the HMRC app to not only view any payment gaps but also check if they can plug those gaps directly through the government’s digital channels. A short survey assesses the person’s suitability to pay online with those eligible to pay directly given a series of options to plug any gaps depending on when someone wants to stop working.
“Calculating whether to top up can be confusing though and ultimately there is no point paying for more years than you need because you won’t get that money back.”
Ms Haine further stated: “People who might need to top up include those that took a career break as well as low earners or expatriates living and working abroad. Remember, this deadline has been extended a couple of times in the past, which makes it more likely the government will stick to the April cut-off point this time around. For this reason, those that think they might need to take action should start the process now.”