The state pension age is scheduled to increase starting next year. This adjustment will impact when individuals can begin claiming their state pension benefits.
Presently, the state pension age for both men and women is 66. However, this age threshold is set to increment to 67 between 2026 and 2028. Individuals born between April 6, 1960, and May 5, 1960, will be the first cohort to experience this uptick in the state pension age.
For those falling within this birth date range, the eligibility age to claim the state pension will be 66 years and one month. Subsequently, this age requirement will gradually rise over the following year until it reaches 67.
Individuals born from April 1977 onwards are currently projected to witness an increase in their state pension age to 68. Although there have been discussions about advancing this timeline, a final decision on this matter has been postponed.
This development follows the recent announcement of a comprehensive review into pension savings, driven by concerns about the heightened retirement risks faced by today’s workforce.
To address these concerns, Work and Pensions Secretary Liz Kendall intends to revive the Pensions Commission, which convened last in 2006. The objective is to explore strategies that encourage workers to enhance their retirement savings.
The state pension age calculation and entitlement details can be accessed through the Pensions Act 2014. You can verify your specific state pension age on the GOV.UK website by inputting your date of birth. It’s essential to note that the state pension age signifies the earliest time you can commence receiving state pension benefits.
Furthermore, this state pension age is distinct from any personal or workplace pension plans you may possess. Presently, the minimum age to access private pensions is 55, but this threshold will be raised to 57 starting from April 2028.
Individuals currently retiring will be eligible for the new state pension, which amounts to £221.20 per week for those meeting the full eligibility criteria. Typically, individuals need 35 qualifying years on their National Insurance record to secure the maximum state pension amount.
It’s important to mention that the state pension undergoes annual increments in accordance with the triple lock promise. Therefore, your state pension benefits are separate from any private or workplace pension schemes you might be enrolled in.
