The state pension age defines the earliest age at which individuals can start claiming their state pension, with the option to delay for higher payments later. Presently, this age is fixed at 66. However, in a staged progression over the next few years, it will rise to 67, impacting those born between 6 April 1960 and 5 March 1961. Anyone born after this period will face a state pension age of 67.
Looking ahead, individuals born on or after 6 April 1978 are anticipated to see the state pension age increase further to 68. This forecast is based on projections from the Pensions Act 2007, which sets the state pension age to reach 68 between 2044 and 2046. Yet, these projections are currently under review, and the government might accelerate this timeline, potentially advancing the increase for some born before 1978.
Under the Pensions Act 2014, state pension age must be reviewed at least every five years. The ongoing third review started last year and is expected to conclude by March 2029. This assessment will examine factors such as rising life expectancy, labor market trends, fiscal impacts, and the pension system’s long-term sustainability.
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Following the review, the government holds the authority to expedite changes to the state pension age, though any policy amendments require Parliamentary approval before taking effect. These reviews aim to ensure that people receive a fair proportion of their adult life in retirement benefits, aligning state pension eligibility with current life expectancy trends.
Historical recommendations from the 2005 Pensions Commission advocate for pension age rises to mirror increased longevity, thereby allowing each generation to enjoy an equitable share of pension time.
Individuals affected by changes to their state pension age will be notified in advance by the Department of Work and Pensions (DWP), affording them time to adjust retirement plans accordingly. To check your personal state pension age, you can use the online services available via Gov.UK, which also provide pension forecasts tailored to individual circumstances.
Eligibility for the new state pension requires at least 10 qualifying years, during which National Insurance contributions were made or credited. These years do not have to be consecutive. With 35 qualifying years, a person can receive the full new state pension. Those with gaps in their National Insurance record can make voluntary contributions to increase their entitlement.
As of 2023, analysis by Royal London shows just over half of the 3.4 million recipients receive the full new state pension, which currently amounts to £230.25 per week. This payment increases annually under the triple lock mechanism, safeguarding pensioners' income against inflation and wage growth.