The change to the official age of retirement will be completed in 2028
The State Pension age in the UK is set to start rising from 66 to 67 next year, with the increase expected to be completed for all men and women across the country by 2028. This planned change to the official retirement age has been part of UK law since 2014, with a further rise from 67 to 68 scheduled to be implemented between 2044 and 2046.
The Pensions Act 2014 brought forward the increase in the State Pension age from 66 to 67 by eight years. The UK Government also altered the way the increase in State Pension age is phased, so instead of reaching State Pension age on a specific date, people born between March 6, 1961 and April 5, 1977 will be able to claim the State Pension once they reach 67.
Be aware of these upcoming changes now, particularly if you have a retirement plan in place. Everyone affected by changes to their State Pension age 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 men and women will increase from 67 to 68 between 2044 and 2046.
The Pensions Act 2014 provides for a regular review of the State Pension age, at least once every five years. The review will be based around the concept that people should be able to spend a certain proportion of their adult life drawing a State Pension, reports the Daily Record.
The UK’s state pension age, currently set to rise to 68, is due for a review before the end of this decade. Originally, the Conservative government had planned this review for two years post-general election, which would have been 2026.
The review will consider life expectancy and other relevant factors in determining the State Pension age. Following the review, the UK Government may decide to implement changes to the State Pension age.
However, any proposed changes must be approved by Parliament before they become law.
Check your State Pension age online
This is the earliest age at which you can start receiving your State Pension, which may differ from the age at which you can access a workplace or personal pension.
The online tool on GOV.UK allows anyone, regardless of age, to check their State Pension age – an essential step in retirement planning.
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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.
Boosting State Pension payments
In terms of boosting State Pension payments, HM Revenue and Customs (HMRC) recently revealed that over 10,000 payments totalling £12.5 million have been made through the new digital service to enhance 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.
The window for making voluntary National Insurance contributions, usually limited to the six previous tax years, has been broadened. The former government widened the timeframe to pay, enabling those under new State Pension transition rules to address taxes dating from 6 April 2006 until 5 April 2018, all the way up to the extended cut-off of 5 April 2025.
This move gives individuals additional time to assess their best course of action and contribute accordingly. Those men born on or after 6 April 1951 and women born on or after 6 April 1953 are in a position to make these voluntary contributions, improving their potential New State Pension sum.
Some may be more suited for National Insurance credits instead of contributions, thus checking options is key. People can find out more about making voluntary contributions on GOV.UK here. People of working age can also check their State Pension forecast on GOV.UK here.
Commenting on the importance of NI contributions for pension entitlements, Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, an online investment service, explained: “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.
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“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 3.7m since its launch.”
She continued: “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.”
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Ms Haine added: “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.”
