State pension age to rise next April for people born in these years

The State Pension age is due to begin its rise from 66 to 67 next year, with the increase expected to be fully implemented for all men and women across the UK by 2028. This planned alteration to the official retirement age has been legislated since 2014, with a further increase from 67 to 68 scheduled to take place between 2044 and 2046.

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

It's crucial to be conscious of these impending changes now, particularly if you have a retirement plan in place. All those affected by alterations 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 concept that individuals should be able to spend a certain proportion of their adult life receiving a State Pension. As a part of this, the UK Government has recently unveiled a new Pension Commission to explore ways of enhancing pension savings, with its findings set to be published in 2027.

It aims to consider areas such as auto-enrolment saving rates, increasing savings among groups like the self-employed, and a review of the State Pension age. Dr Suzy Morrissey will provide insights on factors the UK Government should take into account regarding the State Pension age, while the Government Actuary's Department will prepare a report on the proportion of adult life spent in retirement.

The review of the State Pension age will consider life expectancy along with a variety of other factors relevant to setting the State Pension age. Following the review's report, the UK Government may decide to implement changes to the State Pension age. However, any proposed changes would need to pass through Parliament before becoming law.

Check your State Pension age online

Your State Pension age is the earliest age at which you can begin receiving your State Pension. It might differ from the age at which you can receive a workplace or personal pension. People of all ages can use the online tool on GOV.UK to check their State Pension age, which can be a crucial part of 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 - this is at age 60 in Scotland

Boosting state pension payments

HM Revenue and Customs (HMRC) has recently revealed that over 10,000 payments totalling £12.5 million have been made by individuals using the new digital service to enhance their State Pensions, since last year. However, those looking to maximise their retirement income through the contributory benefit only have a few weeks left to address any gaps in their National Insurance (NI) records dating back to 2006.

Typically, individuals can only make voluntary contributions for the previous six tax years, and after the April 5 deadline this year, the standard six-tax year limit will be reinstated. In 2023, the previous government extended the deadline for making voluntary NI contributions to April 5, 2025 for those affected by new State Pension transitional arrangements.

In turn, this covered the tax years from April 6, 2006 to April 5, 2018. The extended deadline has provided people with more time to consider their options and make their contributions.

Men born after April 6, 1951 and women born after April 6, 1953 are eligible to make voluntary NI contributions to increase their New State Pension. Some individuals may find that they're entitled to NI credits rather than having to make contributions, so they will need to check and consider what is best for them.

More information about making voluntary contributions can be found on GOV.UK. Working-age individuals can also check their State Pension forecast on GOV.UK.

"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."