A specialist in retirement funds has elucidated why certain individuals will experience a delay in commencing their state pension claims starting next year.
Presently, the state pension age stands at 66 for both male and female recipients, but it is slated to increase to 67, commencing next year. This adjustment will be phased in gradually, resulting in some individuals needing to wait a few additional months post their 66th birthday before becoming eligible to claim their pension benefits.
To illustrate, individuals born between April 6, 1960, and May 5, 1960, will attain the state pension age at 66 years and one month. Likewise, those born between September 6, 1960, and October 5, 1960, will have to wait until they reach 66 years and six months to initiate their state pension claims.
This incremental process will persist until April 2028 when the state pension age reaches 67. The rationale behind this state pension age adjustment was expounded by Sir Steve Webb, former Pensions Minister and current partner at Lane Clark and Peacock (LCP), in a recent publication on This is Money. In response to a reader’s query regarding the delay in claiming her pension despite turning 66 in July, Sir Steve clarified that the transition from 66 to 67 will not be instantaneous but staggered between April 2026 and April 2028, resulting in individuals, like the reader, having a state pension age of, for instance, 66 years and four months.
Individuals born after this period will have a state pension age of at least 67. Plans to further raise the state pension age to 68 between 2044 and 2046, affecting those born on or after April 5, 1977, have been subject to discussions and delays. It is important to note that the state pension age signifies the earliest eligibility for claiming state pension benefits and is distinct from any workplace or private pension schemes. The minimum age to access private pensions currently stands at 55 but will increase to 57 from April 2028.
Currently, individuals retiring can claim the new state pension, valued at £221.20 weekly for those eligible for the full amount. Typically, a minimum of 35 qualifying years on the National Insurance record is required to receive the full pension entitlement. Furthermore, the state pension undergoes annual increments in alignment with the triple lock pledge.
