The UK’s State Pension age is set to rise from 66 to 67 starting next year, with the increase expected to be fully implemented for all men and women nationwide by 2028. This planned adjustment to the official retirement age has been legislated since 2014, with a further increase from 67 to 68 slated for implementation between 2044 and 2046.

The Pensions Act 2014 sped up the increase in the State Pension age from 66 to 67 by eight years. The UK Government also modified how the State Pension age increase is phased in, meaning that instead of reaching State Pension age on a specific date, individuals born between March 6, 1961, and April 5, 1977, will be eligible to claim the State Pension once they turn 67.

It’s vital to be aware of these impending changes now, especially if you have a retirement plan in place. All those affected by changes to their State Pension age will receive a letter from the Department for Work and Pensions (DWP) well ahead of time.

Under the Pensions Act 2007, the State Pension age for both men and women will rise from 67 to 68 between 2044 and 2046.

The Pensions Act 2014 mandates a regular review of the State Pension age, at least once every five years. The review will be centred around the idea that individuals should be able to spend a certain percentage of their adult life receiving a State Pension, according to the Daily Record.

The UK’s state pension age, currently set to increase to 68, is due for a review before the end of this decade. The Conservative government had originally planned this review for two years after the general election, which would have been in 2026.

The review will take into account life expectancy and other relevant factors when determining the State Pension age. Following the review, changes to the State Pension age may be implemented by the UK Government.

However, any proposed changes must receive parliamentary approval before they can become law.

This is the earliest age at which you can start receiving your State Pension

The online tool on GOV.UK allows anyone, regardless of age, to check their State Pension age – an essential step in retirement planning.

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 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 aiming to maximise their retirement income through the contributory benefit have only a few weeks left to fill any gaps in their National Insurance (NI) records dating back to 2006.

The opportunity for making voluntary national insurance contributions, typically limited to the six previous tax years, has been expanded. The former government extended the timeframe to pay, allowing 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 deadline of 5 April 2025.

This generous move provides individuals with extra time to evaluate 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 eligible to make these voluntary contributions, enhancing their potential New State Pension amount.

However, it’s crucial to note that some people may be better suited for National Insurance credits rather than contributions, so exploring options is essential.

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.

Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, highlighted the critical role of National Insurance contributions for pension entitlements, stating: “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

She added that filling in contribution gaps can be costly and advised: “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.”

Haine also mentioned the ease of updating records with the Government’s new online services: “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 concluded by explaining the process for individuals to address their NI contributions, saying: “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.”

Ms Haine further stated: “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.”