The state pension age will be rising from 66 to 67 over the next two year but some will face an even higher age requirement
State pension increases beyond the planned move to 67 can still change (Image: GETTY)
The state pension age is the earliest age at which you can begin receiving your state pension, although you can defer it to start payments at a later date. It’s currently 66 but over the next two years, the state pension age will be gradually increasing to 67.
This move will directly affect everyone born between 6 April 1960 and 5 March 1961, while everyone born after this time facing a state pension age of 67. However, people born after 6 April 1978 are expected to have an even higher state pension age of 68.
These estimates are based on the Pensions Act 2007, which notes that the state pension age will reach 68 between 2044 and 2046. However, this is currently under review, so the Government may be able to make the change earlier, potentially affecting people born before 6 April 1978 too.
The Pensions Act 2014 mandates a regular review of the State Pension age at least once every five years. The third review, launched last year and is expected to conclude by March 2029.
It will examine potential future increases, considering factors such as life expectancy increasing, labour market conditions, costs and sustainability. After the review, the UK Government can decide to bring forward changes to the State Pension age, but any proposals still need to pass through Parliament before becoming law.
The reviews are centred on the principle that people should be able to spend a consistent portion of their adult life receiving a State Pension.
In 2005, the Pensions Commission recommended state pension age increases should be in line with current life expectancy to ensure each generation can enjoy the same proportion of their life receiving state pension.
Everyone affected by any changes to their State Pension age should receive a letter from the Department for Work and Pensions (DWP) well in advance. Being aware of these changes in advance will allow people to shift their retirement plan accordingly.
You can also check what your state pension age could be online through the Gov.UK website. The site also provides a state pension forecast tool as not everyone will receive the same amount when they do reach state pension age.
People typically need a minimum of 10 qualifying years, where they paid National Insurance contributions or received National Insurance credits, in order to get any of the new state pension. These years do not have to be consecutive, but the more years you have on your record, the higher the amount you can be eligible for.
Once you reach 35 qualifying years, you will receive the full new state pension. People who are missing a few qualifying years can also plug these gaps in their National Insurance record by purchasing voluntary contributions.
In 2023, just over half of the 3.4 million people currently receiving the new state pension get the full amount, according to analysis from Royal London. It is currently worth £230.25 a week per week but the state pension rises each year thanks to the triple lock mechanism.
